COMPOUND Price Prediction: Can A Strong Reversal Push COMP To $65? 

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COMPOUND Price Prediction Can A Strong reversal Push COMP to $65

COMPOUND is trading at $43.22. The price is up 12.73% in the last 24H. The 24H trading volume saw a jump of 62.64%. The Total Market Cap is $330,485,561.

  • CMP/USDT surged 49.38% in One week.
  • CMP/USDT recorded a Year-To-Date Performance of 38.03%.

COMPOUND has been sliding down since February. The market tumbled down smashing multiple support levels. The reason behind the decline was the weakness of the market near the resistance of $65. The bears managed to push prices down by almost 61% before getting a strong bounce from the support of $23.05.

A Strong Bounce from Support.

Compund price
Source: CMP/USDT by TradingView: https://www.tradingview.com/x/sOHkbxu2/

On the Daily charts, COMP has made a strong recovery of almost 82%, changing the bearish sentiments to bullish in the short term. The big bars in the volume represent the aggressive buying in the market which has shifted the momentum. COMP made a strong move after breaking the resistance of $31.14 and $37.90.

The prices shot up straight to the daily 200 EMA. This increases the chances of a further recovery while shifting the trend on the daily timeframe. At present, the market is bullish, and prices can move higher toward the daily resistance of $65.00. COMP is trading above the daily 9 and 15 ema.

The 4h Chart Shows a strong uptrend

compund price prediction
Source: CMP/USDT by TradingView: https://www.tradingview.com/x/fL30o9to/

The 4H Chart showcases the strength of the Bulls. The market made a bullish Marubozu candle which broke 200 EMA with strong momentum. The market then saw a pullback and a bounce on 9 and 15 EMA and made a higher high. The trend has changed on the 4H, making it bullish in the short term.

Meanwhile, the technical Indicators are pointing at some signs of weakness. The price created a higher high, while the RSI created a lower high. It represents a divergence. But there are no signs of reversal, and such divergences are common in a strong trend. As long prices stay above 200 EMA, expect COMP to reach higher prices.

RSI

The RSI indicator is currently at 63.78 on the 4H. This indicates strong bullish momentum.

MACD:

 The MACD indicator has made a bearish crossover, but the indicator is above 0.

The market will stay more biased towards the bullish side if the indicator is above the 0 line.

200 EMA:

 As observed, on the 4hr, the price is trading above the 200 EMA(exponential moving average), which is a significant support. This is a clear indication of an uptrend where the buyers are in control, and for a trend reversal, the price must break and trade below the 200 EMA.

Technical levels

Support Levels: $37.90 – Support 1

     $31.14 – Support 2

Current Price: $43.22

Resistance Levels: $47.30 – Resistance 1

          $60 – Resistance 2

Conclusion:

COMPOUND was trading in a strong downtrend. The recent moves have shifted the momentum towards buying, and the market appears to be reversing from its lows. The strong recovery suggests that bears are getting weak. The buyers are getting strong, as suggested by the big spikes in volume. The price is trading close to 200 EMA on the daily timeframe. Therefore it is important to stay cautious here. Volatility is high, and opportunity awaits for investors with proper risk-management skills.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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