COMP Technical Analysis: Price May Fall Below $474.57

Compound is a blockchain-based interest rate protocol that enables users to develop decentralized applications using innovative technologies. The network also offers custodial services for digital assets and facilitates the free movement of cryptocurrencies across exchanges and wallets. COMP is the governance token of this ecosystem. The following COMP technical analysis will predict the price momentum for the next two days.

Past Performance

On April 16, 2021, COMP started trading at $562.53. As of April 22, 2021, COMP closed at $528.49. Thus, in the past week, the COMP price has declined by roughly 6%. In the last 24 hours, COMP has traded between $454.77-$552.77.

COMP Price Analysis

Day-Ahead and Tomorrow

Currently, COMP is trading at $495.74. The price has decreased from the day’s open price of $528.48. Thus, the market seems to be downtick.

The MACD and signal lines are positive. Moreover, a bullish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bullish. But, since both the lines are very close to the zero line, they may turn negative soon. Hence, the price may fall further after an intermittent price rise.

Currently, the RSI indicator is at 62%. It faced rejection at 49% and rallied to the current level. Thus, the RSI indicator is showing high buying pressures. Hence, the price may start rising soon.

The A/D indicator is upward sloping. Thus, whale accumulations are higher than whale distributions. There is a bullish divergence here. Hence, the A/D indicator is pointing towards a price rise.

COMP Technical Analysis

To sum up in the technical analysis, when we look at all the oscillators together, a price rise is expected amidst an overall bearish trend. In other words, the market is in a price correction phase.

Presently, the price is below the Fibonacci pivot point of $512. The price may rise up to the pivot point and then fall below the first support level of $474.57. By day end, if the price falls below the subsequent support levels of $451.45 and $414.01, respectively, then the price downtrend is strong.

Currently, the price has fallen below the 61.8% FIB retracement level of $515.33. If by day end, the price falls below the 23.6% FIB retracement level of $477.90, then the bearish trend is strong, and it may continue tomorrow as well.


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