COMP token price analysis: COMP token price is tangled in a range

• COMP token price has been on a bullish movement from the last couple of trading days.
• The COMP token price is forming a flag and pole pattern on a daily time frame.
• The pair of COMP/BTC is trading at the price level of 0.002298 with an increase of 2.31% in the past 24 hours.

Despite the bullish trend in the overall cryptocurrency market, the token price is stuck inside a small range. Although it has bounced off strongly from the demand zone, it trades at the price level of $49.74.

COMP token price is indecisive at the supply zone

The COMP token price as per the price action is super bullish, as recently after rising to the supply zone it has started consolidating in a small range on a daily time scale. COMP token price is forming a higher high and higher low price structure. For the COMP token price to surpass the supply zone, it needs to maintain the current trend to continue the bullish trajectory.

At present, the COMP token price is trading above the important loving average of 50 and 100. This comes after the token price broke the important MAs during the previous bullish run. In the upcoming trading days, these MAs can be seen acting as a strong demand zone for the token price during the pullback. Before the current consolidation token price broke the small-term supply zone with a strong bullish candlestick formation and since then it has managed to sustain above the recent breakout zone. 

Currently, the COMP token price is trading above the lower band of the Bollinger band indicator after bouncing off it. Although it has failed to surpass the upper band, it is currently at the 15 EMA acting as a  strong short-term demand area. Volumes have increased following the erratic movement and therefore it becomes important for investors to let volatility settle and then act upon it. 

The COMP token price is forming a flag and pole pattern on a daily time scale 

COMP token price managed to sustain above the demand zone, skiing a bullish rally following the consolidation at the demand zone. As a result, the token order bounced off to the supply zone. Following the token price, the MACD indicator triggered a positive crossover. The blue line crossed the orange line on the upside indicating a bullish rally. If the token price can break the supply zone with strong bullish pressure, then the MACD lines can be seen riding supporting the trend. 

The COMP token price has turned bullish as it managed to bounce off the demand zone forming a strong bullish candlestick pattern on a daily time frame. Recent bullishness resulted in the COMP token price rising above the important short-term demand zone. Previously the COMP token price was resting in the super demand zone. As the token price rose to the super trend sell line it faces rejection. As of now, the token price is consolidating, and the breakout of the symmetrical triangle will result in the super trend indicator triggering a buy signal.

RSI curve is trading at the price of 61.63 as the token rises off the demand zone. At present, the RSI curve has risen above the 20 SMA. The token is forming higher low and higher high formations on an hourly time frame as the token show bullishness in the higher time frame. The COMP token price can be seen moving if it sustains the recent gains and if it does then the RSI curve can be seen moving even higher up supporting the trend. Once the RSI curve crosses the mark of 70, the COMP token price can be seen moving up quickly. 

Conclusion: The COMP token price as it suggests is bullish, as it reverses from the long-term demand zone. As per the price action, it is forming a reversal chart pattern For the token price to reverse from the current trend it needs to break out of the supply zone activating the reversal chart pattern. The technical parameter indicates a possible breakout of the supply zone. Investors should remain patient and wait for a proper trend before jumping into it.

Support: $47.50 and $43.90

Resistance: $57.60 and $59.10

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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