COMP Technical Analysis: Bearish Influence Grows Over Consolidation
Table of contents
Key technical points:
Past Performance of COMP
COMP prices trends lower under a highly bearish resistance trendline after facing rejection near the $150 mark and the 50-day EMA. The falling trend takes support at the $56 mark to form a descending triangle with the base at $56. Furthermore, the growing bearish influence starts a fallout attempt as the higher price rejection arises with the formation of an evening star pattern.
Source- Tradingview
COMP Technical Analysis
The COMP prices show an upward retracement trend that is heading towards the lowest support level of $56, while the daily candles show greater price rejection. Therefore, traders should expect an end of the support level, resulting in a decline toward the psychological support level of $50. The falling EMAs remain in a bearish alignment, indicating a solid correction phase. In addition, the 50-day EMA (red) offers resistance against the bullish recovery.
The MACD and the signal lines exhibit an upward trend, but the decline in the buying pressure can be observed in the downward tendency in the bullish histograms. Thus, the probability of a bearish crossover grows, which indicates an opportunity to sell. In addition, the RSI indicator indicates a drop in the sideways trend, which is below the halfway mark and the 14-day SMA predicts a decrease in the overall bullishness. In a nutshell, the COMP technical analysis forecasts a downslide in market value to the $50 mark.
Upcoming Trend
COMP sellers can observe a selling spot with the breakdown of $56 which will unleash the trapped momentum within the triangle pattern. Hence, the downfall can result in a dip to the psychological mark of $50.
Resistance Levels: $65 and $75
Support Levels: $56 and $50