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Vikram
Jun 30, 2022
by Vikram

COMP Technical Analysis: Failed Reversal Warns A 40% Downfall

COMP Technical Analysis

Table of contents

  1. Past Performance of COMP
  2. COMP Technical Analysis 
  3. Upcoming Trend
COMP prices action showcases a bullish reversal failing to surpass the 50-day SMA, warning of a downfall to under the $30 mark.

Key technical points:

  • The COMP market price has decreased by 5.51% over the past week.

  • The price action shows a sharp bearish retracement from $56.

  • The 24-hour trading volume of Compound is $133 Million, indicating a rise of 25%.

    • Past Performance of COMP

    COMP price action showcases a bullish reversal from $27.75 with a double bottom breakout resulting in a 100% price jump between June 19th and 25th. The reversal rally loses against the selling at $56 and the 50-day EMA resulting in a dip under $50.

    TradingView Chart

    Source- Tradingview

    COMP Technical Analysis 

    The bearish retracement comes after a fall in the trading volume reflecting a loss of interest in the token. If the COMP price close below $50, a downfall to the bottom support at $27.75 seems inevitable. The crucial SMAs – 50, 100, and 200-days marked as red, orange, and black maintain a  bearish alignment teasing a potential reversal. Moreover, the market price faces opposition from the 50-day SMA resulting in the recent setback.

    The MACD and signal lines showcase an uptrend reaching the zero line while struggling to maintain a positive alignment. Hence, the indicator showcases a bullish trend in motion but warns of a bearish crossover. The RSI indicator shows the slope retracing under the halfway line to reach the 14-day SMA. Hence, the indicators showcase weakness in buying pressure adding points to the downtrend continuation possibility. In a nutshell, the COMP technical analysis shows a bearish trend gaining momentum ready to reach $27.75.

    Upcoming Trend

    If COMP prices fail to rise above $50, the uptrend will break under $30 and test the $27.75 bottom support with increased chances of bearish fallout.

    Resistance Levels: $56 and $75

    Support Levels: $40 and $30

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    COMP Technical Analysis: Failed Reversal Warns A 40% Downfall
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.