Compound (COMP) bulls have to surmount vendor congestion round $140 to keep up the upward trajectory
Compound wants to interrupt above a serious resistance space if bulls are to proceed on an uptrend that might see them retest the $160 worth degree.
Nevertheless, the final a number of hours have seen sellers’ refusal to cede floor limit motion beneath $140. If bears take management quick time period, Compound’s worth may drop to the 50-SMA (every day chart).
COMP/USD technical outlook
Whereas bulls may need sufficient help to cost 14% in the direction of $160, the technical outlook suggests sell-off stress within the subsequent few days may see a pullback to lows of $109 or decrease. If that occurs, the doubtless correction would set COMP/USD again by about 21% from the present worth ranges.
The every day chart suggests bulls are discovering it tough to interrupt above the identical resistance space that capped the uptrend in November. The following decline noticed COMP dip to costs beneath $100. The present technical outlook suggests an analogous correction if bulls fail to clear the hurdle.
COMP/USD every day chart. Supply: TradingView
The 100-SMA ($127) presents help in case of a downturn in bulls’ fortunes, with an additional cushion on the 50-SMA round $107.
The next shut on the every day and weekly time-frame, above the first resistance degree, ought to see bulls rally to $150. Prolonged positive factors amid a broader uptick in DeFi sentiment may then assist bulls goal $160 after which the 90-day excessive round $197.
COMP/USD 4-hour chart. Supply: TradingView
Nevertheless, as proven on the 4-hour chart above, bears are prone to keep put close to the highlighted resistance degree quick time period. One indicator that implies a bearish pattern is probably going is the RSI, which is trending within the overbought area. A flip within the metric may see costs decline, as is recommended by the TD Sequential that not too long ago printed a promote sign.
The final time the TD Sequential printed a inexperienced 9 candlestick on the 4-hour time-frame, validation noticed costs right to lows of $103.
COMP/USD 4-hour worth chart. Supply: TradingView
If the most recent promote sign validates and bulls fail to clear the highlighted hurdle, COMP/USD may right to $120. Past this degree, additional losses may see bulls look to the principle help ranges across the 50-SMA ($111) after which on the 200-SMA ($109).
On the time of writing, Compound is buying and selling round $136, about 10% within the inexperienced over the previous 24 hours. The token is outperforming different prime 10 DeFi tokens, with Aave (AAVE) posting the subsequent greatest 24-hour efficiency presently at +6.5%.
