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- 1 Compound price trades at $72.73 while witnessing a gain of 0.28% during the intraday trading session.
- 2 The 24-hour trading volume is down by 6.38%.
- 3 COMP price is trading above 20, 50,100, and 200-day EMAs.
COMP price has been in a strong uptrend since mid-June 2023 after the formation of a support level at $26. The cryptocurrency price observed a rise of 228% and formed a high of $85.90. Compound coin became one of the top gainers in the crypto market.
Reason Behind Compound’s Upsurge
The recent surge in Compound price can be attributed to several factors. The bullish rally which occurred during mid-June was due to BlackRock, an investment banking firm, filing for Bitcoin Spot ETF which led to a rise in positive sentiment in the crypto market.
Another significant catalyst is the presence of whale activity and potential institutional investors. There have been notable transfers that indicate bullish behavior and can have an impact on the supply and demand dynamics that influence the price.
The notable growth was also fueled by the recent announcement of the release of Superstate Funds by Robert Leshner, Compounds’ founder, aiming to bridge traditional markets with blockchain ecosystems.
The major challenge with a decentralized finance ecosystem is the lack of integration with traditional financial markets. Superstate can help in solving this problem.
COMP price faced strong rejection from $85.90 and corrected the bullish move. New support was formed at the $62 level and currently, the price is headed in the upward direction in hopes of shattering the resistance level of $78.
If a candle can close above $78 and the next candle can break the high of the previous candle with follow-up bullish momentum, the price might fill the upper wick of the 16th July candle and rise toward the next resistance level of $90.
The current candle seems to be losing bullish momentum. If bears can push the price below $70, it might retrace back to the recent support of $62.
Will COMP Price Reach $100 in August 2023?
Chaikin money flow (CMF) score has climbed above the 0 mark from -0.14 and is currently at 0.01 indicating increasing strength in the market. Compound price is trading above 20,50,100 and 200-day Exponential moving averages (EMA), indicating bullish momentum with a 20-day EMA acting as a support for the price.
The relative strength index (RSI) is 60.07 implying that the price is in bullish momentum and nearing the overbought zone but has dropped below the 14-day SMA of RSI.
The Bollinger bands have started to contract signifying a drop in volatility. The long/short ratio is 1.03 with 50.75% longs and 49.25% shorts suggesting a higher number of buying positions in the last 24 hours.
Conclusion
The market structure and price action of the Compound coin are currently bullish but traders should wait for the price to close above $78. Technical parameters are favoring buying side but there is a decrease in the bullish momentum.
Technical Levels
- Major support: $62 and $53
- Major resistance: $78 and $90
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.