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.
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.
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