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Vikram
Apr 22, 2022
by Vikram

COMP Technical Analysis: Sellers Ready To Crack The EMA Trap

COMP
COMP coin price action displays a sideways trend trapped between the EMAs as the sellers plan a breakout rally to reach the $115 mark.

Key technical points:

  • The COMP coin price hangs at the 50-day EMA. 

  • In addition, MACD and signal lines give a bearish crossover. 

  • Finally, the intraday trading volume of Compound is $96.88 Million, with a 12% fall.

    • Past Performance of COMP

    COMP coin price action shows a sideways trend between the 50 and 100-day EMAs and a double top breakout. However, the support at the 50-day EMA fuels a bullish retracement to retest the breakout. The breakout accounts for a decline of 7% in the past day and forms a bearish engulfing candlestick.

    TradingView Chart

    COMP Technical Analysis 

    COMP coin price shows a high possibility of a downtrend continuation after the double top breakout. However, the entry opportunity awaits a closing below the $132 mark to avoid a fakeout.

    The crucial daily EMAs (50, 100, and 200) struggle to maintain a bearish alignment as the 50 and 100-day EMAs sustain a consolidation range. However, closing below the 50-day EMA will ensure a fallout trend reaching $115.

    RSI indicator: The sideways trend leads to diagonal decline to reach the zero line as the downtrend gains momentum. Hence, a fall in RSI to the oversold zone is highly likely.  

    MACD Indicator: The MACD and the signal lines are diverging after a bearish crossover reflecting a gradual rise in selling pressure.

    In a nutshell, the COMP technical analysis highlights the high likelihood of a downfall continuation below the 50-day EMA.

    Upcoming Trend 

    The COMP coin price shows a double top breakout within the accumulation range formed between the 50 and 100-day EMA. Hence, closing below the 50-day EMA will signal a selling spot with a target of $115.

    Support Levels: $130 and $115

    Resistance Levels: $150 and $170

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    Compound COMP
    COMP Technical Analysis: Sellers Ready To Crack The EMA Trap
    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.

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