Compound Price Analysis: COMP/USD In A bullish Phase Despite Rejection From $247 Monthly High

By John Isige
August 12, 2020 Updated August 12, 2020
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  • Compound price rose to highs close to $250 but retreated to confirm the 61.8% Fibo support.
  • COMP/USD bullish scenario remains intact in spite of the drop from $247 as observed with the RSI.

Compound roared to highs above $240 towards the end of the American session on Tuesday. The Asian session on Wednesday has been characterized by increased seller dominance to the extent a reversal occurred with declines making it under $220. On the positive side, support seems to have been established above the 61.8% Fibonacci retracement level of the last drop from $247.18 to a lower price level at $152.68.

A bullish reversal is underway at the time of writing with COMP/USD exchanging hands at $225. As more and more buyers to join the market, Compound is set to continue roaring upwards. However, the magnitude of the bullish leg is not known as of now.

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Looking at the token from a technical angle, we can tell that it is indeed in a bullish phase. In other words, the influence buyers have over the price is likely to stick in the market a while longer.

COMP/USD 15’ chart

COMP/USD price chart
COMP/USD price chart by Tradingview

The Relative Strength Index (RSI) is drawing closer to the oversold (70). This follows a retreat from the overbought to the level at 66.94. As it re-enters the region, buying entries are likely to increase. This way, the volume will grow and the only way for Compound would be upwards.

The bullish grip is also emphasized by the gap the 50 SMA is making above the longer-term 100 SMA in the 15-minutes timeframe. In addition, the Moving Average Convergence Divergence (MACD) is holding ground within the positive region (precisely at 11.57. It also features a minor bullish divergence of 0.13 to further highlight the bullish picture. For now, support at $220 would be key to gains above $230 and even $240.

Read moreDeFi Rush In Full Swing As Aave Dethrones Compound

Compound Intraday Levels

Spot rate: $225

Relative change: 31.28

Relative change: 15.90%

Trend: Bullish bias

Volatility: Expanding

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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