Analytics

Compound Token Consolidates After 90% Price Jump, Expected To Reach $1000

  • Comp coin price has been moving in a range of between $700 and $800 since the start of MAY 2021.
  • The coin price is trading above all the major EMAs but with declining volume and momentum due to consolidation. 
  • The pair of COMP/BTC is trading at 0.01352 BTC, with an intraday gain of 3.70%.

Source-TradingView

COMP token price, in the 4-hour timeframe, has been consolidating between $700 and $800. The coin price is below parabolic SAR due to the consolidation. A breakout of consolidation and the SAR will result in a price jump hitting the $1000 mark.

A demand zone is sustaining the price above $700 in the daily timeframe. The live COMP coin price today is $800.58 with a 24-hour trading volume of $228,126,641. It is up 3.93% in the last 24 hours. The coin ranks at #46 as per market cap, with a live market cap of $4,063,462,254

Consolidation breakout expected to occur soon 

Source-TradingView

COMP token consolidation range, in the 4-hour timeframe, is close to a breakout soon. The levels of buying volume are on the higher side. Investors might see this as an opportunity to enter after the breakout. 

However, the probability of price falling, back under the consolidation range, cannot be ignored. As per the pivot points, $864 and $950 levels are immediate resistance, and on the flip side, the levels of $675 and $600 are providing support.

The coin price is trading just above the 20(red) and 50(yellow) EMA, which are intermingled in the 4-hour timeframe. The 50 EMA (yellow) has provided constant support to the price in the daily timeframe. Investors could think of price breaching 50 EMA as an exit signal.

The RSI (bullish) indicates bullish momentum while trading at 58. The RSI line is spiked and is expected to head back from the overbought zone soon, and bearishness can be expected from RSI as it reaches near 60.

The ADX indicates a stagnant trend momentum due to the consolidation, and it is trading at 14 while the slope in ADX is moving sideways.

Conclusion – The breakout of the consolidation is an entry position but the possibility of reversal of price to head back deeper into the consolidation range is something to take note of. The increasing buying volume and RSI do support bullish sentiments. However, the loss of momentum indicates the price reversal.

Support – $675 and $600

Resistance- $864 and $950

   

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