COMP Technical Analysis: Pump At $44 Struggles At 50-day SMA 

The falling trend in the COMP prices takes support at the $44 mark resulting in a sharp bullish rise within the last night. The 12% jump overnight results in a bullish engulfing candle, but the follow-through candle faces opposition from the 20-day SMA. So, will this overnight jump succumb under the increased supply at the SMA?

Key Points:

Source - Tradingview

COMP Technical Analysis

The COMP prices maintain an overall downtrend in the daily chart after facing opposition from the 100-day SMA near the $65 mark. The bearish turnaround from the opposing SMA results in a drop to the $44 support level.

However, the recent increase in buying pressure resulted in a 12.92% jump overnight to create a bullish engulfing candle in the daily chart. But the 20-day SMM opposites bullish follow-through led to a higher price rejection candle.

Furthermore, the increase in intraday trading volume supports the higher price rejection increasing the possibility of a bearish turnaround. If the buying pressure increases, the possibility of buyers undermining the opposing SMA will increase, leading to a pump above $50.

Conversely, the falling prices breaking below the $44 support level will retest the crucial support level of $27.

Technical Indicators

The RSI slope spikes from the oversold zone to exceed the 14-day average line but remain below the halfway line. Moreover, The MACD indicator displays a high possibility of a bullish crossover between the fast and slow lanes as a negative histogram decline.

Hence the technical indicators maintain a bullish outlook for the upcoming friend despite the higher price reduction in the COMP daily candle.

Resistance Levels: $50 and $60

Support Levels: $44 and $27