Bitcoin
BTC$56 900.34

-2.35%

Ethereum
ETH$3 068.42

-1.69%

Tether
USDT$0.999955

-0.01%

Binance Coin
BNB$519.11

-2.01%

Solana
SOL$134.58

-5.67%

USD Coin
USDC$0.999887

-0.01%

Compound (COMP): Randing Following the Period of Intense Growth


September 2020

If you possess at least some insight into what’s going on in the DeFi space right now, then you ought to know that Compound (COMP) represents one of the biggest projects, having already locked around $800 million in assets.

But despite the resounding success in fundamental development, COMP’s price action has been severely lacking bullishness since the beginning of the month, as the DeFi token gained only 13% in the USD market over that period of time, while keeping on the level with Bitcoin.

Seeking the bottom of the correction


Let’s begin the COMP price analysis with a look at the all-time chart, which is not particularly extensive since Compound got listed on the exchanges this July.

COMP historical chart

Here we can see that Compound has already established a magnetic point towards which the price got pulled on multiple occasions during the past months. This area is located near $120, which, as you can see, has successfully served as both support and resistance for the price action, and the probability of it becoming a trampoline for another bull rally is relatively high, given that the hype around DeFi and yield farming, something Compound is best known for, will not cease any time soon.

Therefore, $120 could be a good spot for entering a long trade on the condition that the price would offer some reliable signs of reversal, such as the morning star pattern or a double bottom, which has already formed on that chart, though it’s yet to start dancing to the bullish tune.

The breakout from the recently established range between $162 and $186, outlined on the daily chart below, would also serve as the signal of downtrend reversal and the return to bullish ways.

1-day COMP/USDT chart

Even though Compound has been ranging during the last seven days, the market remains sufficiently volatile for scalpers to operate. Swing traders, on the other hand, would have to sit and wait for COMP to break above $186, with $193 being established as a suitable buy area, given that the price successfully retests the support, and the trading volume would be on the rise.

The break below $162 would negate the bullish scenario and open the gateway for an even stronger correction since the current support level has been holding very confidently so far, and the breach of it to the downside would constitute a serious blow for the buyers. If the bears do get the upper hand, Compound could sink to $140. 

Remember that COMP still bears a lot of upside potential, so make sure to exercise extreme caution when trying to short this DeFi token.

Author: Alex Paulson for Crypto-Rating.com

Related

Compound (COMP): The Lull Before the Storm
Compound (COMP): The Lull Before the Storm

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 72.8% 54 $56 900.34 -2.35% 4.43% $1 122 078 373 572 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 73.6% 44 $3 068.42 -1.69% 6.70% $368 858 212 080 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.4% 1 $0.999955 -0.01% 0.02% $112 254 763 150 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 76.4% 48 $519.11 -2.01% 10.75% $76 612 231 206 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 79.2% 32 $134.58 -5.67% 6.90% $62 438 260 403 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 92% 2 $0.999887 -0.01% -0.01% $33 973 012 586 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 76.4% 40 $0.463312 3.77% 14.09% $25 855 292 412 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 84.4% 23 $7.30 2.00% 10.56% $18 295 734 723 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 72.4% 53 $0.105334 -3.66% 8.35% $15 282 184 060 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 82% 32 $0.399814 1.83% 20.69% $14 344 205 229 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 81.2% 33 $0.135897 1.12% 11.14% $11 841 337 472 TRX 7 days price change
12 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
13 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 96% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 94% 2 $65 806.83 0.78% -2.68% $10 083 957 608 WBTC 7 days price change
15 Avalanche (AVAX) AVAX Avalanche predictions 71.2% 56 $24.98 -2.91% 7.15% $9 850 303 701 AVAX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.