Compound price prediction suggests bears are getting active and more decline may be visible. It faces rejection from $68.00 and reverses down indicating the initial signs of a bearish trend reversal. However, the confirmation of trend reversal will come when the price closes below the $50.00 level.
The sudden downfall in COMP price had raised concern for its investors. Yet, the buyers are active near $50 so they will try their best to give a bounce. If the buyers succeed in defending the support, new participants might take the risk and accumulate at a cheaper rate.
The COMP crypto slipped below the 50-day EMA, indicating that the bears are strengthening their grip. If the price trades below the 50-day EMA, then the risk of further decline will substantially increase.
The price behavior is quite volatile indicating that the speculators are active and sharp moves are possible. Moreover, it also increases the probability of fake breakdown. So, the bears need to be careful before building fresh shorts.
Currently, the pair of COMP/USDT is trading at 51.00 with an intraday decline of 13.35%. In the last 24 hours, the volume to market cap stands at 0.1572.
Is the Downfall in Compound Price Temporary?
The Compound price witnessed a panic sell-off from the higher level. It seems the correction has begun and slowly bears will take control. At present, the supply zone is placed at $60.00 and the bears’ dominance is visible.
Until the COMP price is able to regain the $60.00 mark, the sellers will remain active. So, new participants should avoid buying this crypto at current levels. They must wait for clarity in the direction before building any position.
The analysis suggests the downfall looks genuine and more downside may open after a minor bounce.
Will COMP Erode The December 2023 Gains?
COMP price is turning bearish and sellers are succeeding to snatch the control from the bear’s grip.
If the price drops below the $50.00 level then the complete gains of the last two months will erode. It will negatively impact the sentiment of the investors and invites another round of sell-off. However, the buyers will not easily step back and try their best to halt the downfall.
Conclusion
Compound price prediction turned mildly bearish for January 2024. The recent downfall has strength so more decline is possible. The analysis suggests that the COMP price will retest the $40 to $45 support range before showing a reliable bounce.
Technical levels
- Resistance levels: $60.34 and $68.35
- Support levels: $44.02 and $38.74
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
Source: https://www.thecoinrepublic.com/2024/01/03/compound-price-fell-13-will-comp-price-slip-below-50/