Crypto Technical Analysis

Compound(COMP)/USDT Technical Analysis: 08 February 2022

Compound(COMP)/USDT Price Prediction

Compound price went parabolic since beginning to hit the highs above $500 initially, halted for some time and spiked high to smash its ATH above $900. Like many other crypto assets, the COMP price also fell into a deep bearish well and plunged nearly 88%. Currently, the asset is utilizing all its resources to flip the downtrend as it did before. But, the validation of the flip into a healthy uptrend may only be when the price surpasses certain important levels.

Compound(COMP)/USDT Technical Analysis at a Glance

The beginning of the current trading month was pretty bullish for many of the assets and Compound is one among them. The COMP price maintained a notable uptrend throughout the week, withstanding a couple of strong pullbacks. Despite the significant uptrend, the bearish clouds still hover over the rally which may again prevent the price to range towards the next levels. 

Short Term The price has rallied throughout the week and currently is expected to get exhausted and also experience a minor pullback to the immediate support levels
Mid-Term COMP price may plunge a little as the sellers have initiated to extract their profits while buyers appeared to be drained a little
Long-Term In contrast, the long-term forecast is pretty bullish as the price is heading towards the north slowly yet steadily. 

Additional Read: Daily Crypto News, 8 February 2022

Compound(COMP) Technical Indicators & Pivot Levels

Technical Indicators

Technical Indicators Value(1Hr / 1D) Action (1Hr / 1D)
MACD(12, 26) 2.0 / -8.9 Sell / Buy
Momentum(10) 2.0 / 26.5  Sell / Sell
Average Directional Index(ADX) (14) 20.5 / 35.4  Sell / Neutral
Average True Range(ATR) 2.7 / 12.2  Less Volatile / Less Volatile
Bull-Bear Power 1.4 / 19.5 Neutral / Sell

Pivot Levels

Pivot Levels Short Term Long Term
Moving Average(MA)-50 $142.3 $175.7
Moving Average(MA)-200 $130.4 $308.4
Resistance $176.4 $235.3
Support  $133.3 $118

Summary

The Compound price in the short term is expected to continue surging despite some minor pullbacks. ATR is pretty negative as it points out the asset being less volatile in both time frames and hence no drastic move is inline and hence the investments may be pretty safe. 

The buying volume had been quite high since the previous trading day and hence the asset may face an interim pullback as MACD lets out a bearish signal in the short term. While in the long term, MACD is extremely bullish as the buying volume has just begun to accumulate and may continue until the asset reaches the immediate resistance. 

On the other hand, the ADX, the strength indicator, signals gain in the rally strength in the short term while in the long term, the rally is expected to get slightly weaker. However, it may be a temporary one. The bears may get active in the short term and extract their profits leading the price towards an interim correction, while in the long term, bulls keep up their control over the rally. 

Coming to the pivotal levels, the COMP price has just pierced through the 50-day MA in STF and displayed its bullish tendency. However, the next crucial resistance is pretty long around $175 and hence an extreme influx of liquidity is required to reach these levels. The rally may not be validated as an uptrend until these levels are reached. Once the resistance is tested and the price ranges above $200, one can expect a notable uptrend aiming at the deciding resistance at $308. 

Compound(COMP)/USDT Technical Analysis for the Week

The Compound price had a pretty bearish close after a healthy consolidation of around $120. Woefully, the asset plunged hard to as low as $113 just before the monthly close and quickly began with a recovery. And ever since then the COMP price is maintaining a significant uptrend, rallying above $140 at the press time.

Source: Tradingview Date: 08-02-2022 Time: 12:51pm

  • The COMP price is still hovering within a pretty huge downtrend in the long term and the flip may not be validated as a breakout
  • Currently, after registering constant green candles in a row, the asset appears to have been exhausted and hence could face a small correction
  • On the other hand, the Bollinger bands which usually let out the next probable move is pointing out towards a drastic change in the trend soon
  • The price has hit the upper bands and at the same time, Bollinger bands are experiencing a squeeze. Therefore the price may fall slightly as it is on the verge to get rejected
  • However, the squeeze usually results in the price breaking through the consolidation and high range. And if the asset withstands the current rejection, it may swing high to achieve levels above $200 too.

Compound(COMP)/USDT Technical Analysis for Today: 08 February 2022

The Compound price has maintained a substantial uptrend throughout the past week which also includes a couple of heavy pullbacks. After rallying high, the price is currently experiencing a small pullback as the selling volume slowly mounted. But it may be a short time correction as before which may not impact the uptrend. 

And hence the COMP price may continue surging high aiming for the next resistance throughout the week. Interestingly, the probability of smashing $200 in this week is extremely high but at these levels, a notable drop may also be pre-programmed. 

The Compound price at the press-time is $146.67 with a jump of nearly 1.70% compared to the previous day’s close. The trading volume has surged by 11.65% and stands at $93 million which may hit $100 million soon. On the other hand, the market cap has jumped by 2.3% and is very close to surpassing the $1 billion mark.

Where & How to buy Compound(COMP)

COMP price is extremely bullish in the long-term and hence do you want to invest in Compound? If yes, then you are at the right place. 

Buying, Selling, trading, etc of your favorite crypto is very easy on CoinDCX. You need to first download the CoinDCX App on your smartphone and enter the required details. Once you enter your bank details, the platform verifies within a few minutes to complete the registration. Now you need to fund your CoinDCX wallet and buy your desired crypto. Simple!!

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Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information, or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment, or tax advice by the reader. The calculations, data, risk-return formulations, performance, or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors, or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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