Is It the Time To Dump COMP?

Compound (COMP) lets you earn interest on your crypto by lending them to others. You get cTokens when you deposit crypto into a pool. These cTokens are like IOUs that grow in value over time. You can swap them back for more crypto than you put in. For example, if you lend ETH, you get cETH that you can redeem later for more ETH.

The Compound price is currently trading at $57.43 with an incline of 1.43% in the past 24 hours. COMP holds a total market cap of $447.78 Million and ranks 83rd in the crypto market.

COMP token has a trading volume of $125.59 Million with an incline of .23% over the past 24 hours. It has over 7.79 Million tokens in circulating supply. The volume-to-market cap ratio of the COMP token is 27.90% indicating high volatility in the market.

Compound Price Prediction Using Price Action Strategy

The Compound price prediction reveals that the token had been in a long-term declination phase and slid nearly 60% from February to June 2023 thus forming a new swing low. the price also seemed to respect the trendline resistance and suffered multiple rejections from the trendline.

However, the price got the buyer’s interest after hitting a new swing low and hiked by nearly 60% thus breaking above the trendline resistance. However, the upper supply zone halted the rally and the price declined.

Based on the technical analysis and the Compound price prediction from various sources, the price of the Compound seems to be topping out and may head toward a correction phase to fill the imbalance left. The long-term outlook for COMP is more optimistic as the price has made a shift in the long-term trend.

COMP Price Forecast from Indicators’ point of view

As per the EMA analysis, the COMP price has made a breakout of 50 and 200 EMA both indicating a strong uptrend. Currently, the price is trying to sustain near the 50 EMA. The EMAs may act as support if the price corrects.

At the time of publishing, the RSI value of the COMP token is 41.28 and that of the SMA line is 51.90. RSI is declining suffering rejection from the SMA line showing the negative sentiment in the market for now.

Conclusion

Compound price prediction concludes that the Compound token has been falling for four months and facing resistance from a trendline. The price bounced back from a low point and broke the trendline, but then dropped again. The price may correct further and undergo a correction phase to fill the gap left behind. The long-term outlook is more positive as the price has changed the trend.

Technical Levels

Support levels: $53.59 and $44.25.
Resistance levels: $68.25 and $80.03.

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 or stock comes with a risk of financial loss.