COMP Technical Analysis: Trendline Breakout Teases Jump To $75
Table of contents
Key technical points:
Past Performance of COMP
COMP prices have steadily declined under the influence of a highly bearish resistance trendline in the daily chart. The bearish free fall pushed the altcoin to a low of $28.5, accounting for a drop of 83% in market value since April. However, with a rounding bottom reversal, the market value jumps more than 50% in the last three days, breaking above the resistance trendline.
Source- Tradingview
COMP Technical Analysis
COMP price action forms multiple bullish engulfing candlesticks in the past few days resulting in a bullish pattern and a trendline breakout. Moreover, the increasing demand is evident in the rising trend in intraday trading volume. The market price has traded lower under the influence of the 10 and 20-day MA during the correction phase. However, the recent surge breaks above the 10-DMA and prepares to challenge the 20-DMA.
The daily-RSI slope shows a rounding bottom reversal to exit the oversold zone and surpass the halfway line along with the 14-day SMA. Hence, the indicator reflects a remarkable increase in the underlying bullishness. The MACD and signal lines showcase a reversal in the bearish trend leading to a crossover and regaining the bullish alignment. Moreover, the crossover restarts the positive trend in the MACD histograms reflecting a surge in buying pressure. In a nutshell, the COMP technical analysis displays a rising trend momentum in the reversal rally teasing a price jump above $50.
Upcoming Trend
If the buying pressure continues, COMP prices will avoid a retest and continue to soar above $50. Hence, traders can expect the breakout rally to reach the $75 mark if the uptrend sustains.
Resistance Levels: $50 and $75
Support Levels: $35 and $28