Compound Technical Analysis: COMP Awaits Ultimate Liftoff To $125


Compound
Compound

Compound Technical Analysis: COMP Awaits Ultimate Liftoff To $125

  • Compound lifts off from recent lows above $92 to retest $120 before gaining ground to $125.
  • Bulls are fully in control of the trend and likely to push the throttle forward to complete the remaining part of the journey to $125.

Compound is one of the most-improved decentralized finance (DeFi) tokens in terms of price action over the last 24 hours. Curve Dao Token is at the helm of the rally with gains above 35%.  As discussed earlier, Compound recently hit a bottom and embarked on a recovery journey just like Bitcoin. The DeFi token is teetering at $117 after accruing more than 12% in gains.

The momentum and the trend are both in the hands of the bulls as seen by the Relative Strength Index (RSI). The trend strength indicator is almost piercing into the overbought region, a move that will most likely encourage more buyers to join the market. If buy orders increase, gains to $125 will be relatively quick, while the upside target might shift to $130.

Looking at the Moving Average Convergence Divergence (MACD), buyers have the upper hand and are likely to remain in control a while longer. The MACD is not only in the positive region but also features a bullish divergence.

COMP/USD 4-hour chart

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

On the other hand, Compound is trading above the moving averages, whereby the 200 Simple Moving Average (SMA) provides immediate support. The 100 SMA holds the ground at $105 while the 50 SMA, slightly above $100.

The immediate resistance at $120 must come down for gains eyeing $125 and $130 to come into the picture. On the downside, besides the moving averages support, COMP will seek refuge at $108, $100 and $92 in the event declines significantly extend.

Compound Intraday Levels

Spot rate: $117

Relative change: 6.4

Percentage change: 6%

Trend: Bullish

Volatility: High

Author: John Isige
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
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John Isige 762 Articles
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
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