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Compound Coin Price Analysis: Range breakout may lead COMP price near $750 mark

source-logo  thecoinrepublic.com 16 April 2021 19:23, UTC
  • Comp coin price has been moving in a range of between $550 and $350 for the past two months
  • Comp has been in the range bounded uptrend from late March and has increased 75%.
  • The buying volume has increased 99% in the last 24 hours, which could lead to the breakout of this range

Compound coin has increased 75% from 25th March and has also been above 50 EMA (yellow), leading to an ascending triangle in the daily timeframe. There is an increase in buying pressure observed in this new uptrend. The resistance zone has been tested thrice now, and the weakness of this zone and the increase in buying volume could lead to a breakout soon. As the COMP COIN has been consolidated for so long, the breakout could lead to a massive upsurge in price. The market capitalization of the Compound coin is $2,977,779,720 (+13.28%) and the 24-hour volume is $630,077,589 (+99.84%)

Breakout of the rounded bottom pattern for COMP coin

Compound coin has formed an ascending triangle in the daily timeframe and a rounded bottom pattern in the 4-hour timeframe. Breakout of this round bottom pattern has also led to the breakout of ascending triangle pattern. Still, the resistance zone in the daily timeframe has a more extensive range in comparison to the resistance line of the 4-hour timeframe. The breakout of both patterns could lead the price close to the $750 mark at least as the momentum coiled up from February may be more massive than expected. 

However, the relative strength indicator is close to 70 in the overbought zone, and this might lure bears, and the coin price might be rejected once again.

The 50 EMA(yellow) is above 200 EMA (white) and has recently formed a bullish crossover. This crossover is expected to bring a lot of solid bullish participants. 

Conclusion

The retest of breakout is always a perfect entry spot, but the possibility of a retest is not 100%. Early traders must be cautious to not enter with large quantities before the retest. 

Support – 50 EMA along with mentioned levels

Resistance- $600 along with mentioned levels

thecoinrepublic.com