en
Back to the list

COMPOUND Price Analysis: Bearish Dominance Everywhere, COMP Price Slumped 19% in 7 days.

Analytics

www.thecoinrepublic.com 03 July 2022 20:31, UTC
  
Reading time: ~3 m

  • The price is again bearing a bearish dominance over the daily price chart. Although the volume gained 20% the token needs to attract more buyers.
  • The technical indicators appear to be manipulative this time, but analysts believe the market may rally bearishly.
  • The COMP/BTC pair is at 0.002524 BTC with a gain of 5.34% in it.

Compound is a DeFi lending protocol that allows users to earn interest on their cryptocurrencies by depositing them into one of several pools supported by the platform.

The COMP price after a massive recovery of 115% in a week has now started rallying bearishly again over the daily price chart. This is a result of domination by the traditional cryptocurrency Bitcoin as it slumped to $19,000 mark, as BTC is one the major dominators it reflects the domination to all the other altcoins. The COMP bulls are opposing the movement and trying to reverse the trend. But the efforts are not enough so the coin needs to attract more buyers to overcome this bearish dominance, still the price is moving below the exponential moving average.

The current price for one COMP token is trading at $48.19 with a gain of 5.57% in its market capitalization in the last 24 hrs. The token has a trading volume of 129 million with a gain of 20.91% in the 24 hrs trading session, which is a sign of relief as this supports the price and has a market cap of 350 million. The volume market cap ratio is 0.3603.

Source: COMP/USD by tradingview

Will COMP Make a Reversal

While analyzing the graph for a short term (4 hrs) we can closely observe the battle for dominance over the market. The trading volume after a gain of 20% is still moving below average. The technical indicator like MACD after multiple crosses is now showing a positive cross and the histograms started growing green, and thus it appears to be in favor of bulls. Whereas the relative strength index is indicating an increase in selling pressure as it has started diving over the hourly and daily chart. The RSI value is below 55.

Source: COMP/USD by tradingview

Conclusion

The COMP price after a massive recovery of 115% in a week has now started rallying bearishly again over the daily price chart. A major reason behind this is dominance by the leading cryptocurrency BTC. The COMP bulls are trying to dominate but the bears are not ready to lose their grip over the market. The technical indicators appear a bit manipulative this time so investors need to wait for any directional change before making any decision.

Technical levels

Resistance levels: $51.5 and $56.5

Support levels: $43 and $32

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

ALSO READ: Solana Avoids Downtime on First Day of Month


   Source
Back to the list