Compound Price Analysis: COMP Falters to Gain support from the Buyers as it Struggles below Channel!

Compound price has been trying to find support at the lower end of the rising parallel channel over the daily chart.
COMP crypto is trading below 20, 50, 100 and 200-days Daily Moving Average.
The pair of COMP/BTC is at 0.002277 BTC with an intraday drop of 3.56%.

Compound’s estimated price right now is $49.00, and in the last day, it lost 4.36% of its market value. The volume of trade has increased by 40.76%, nevertheless. This shows that buyers are making an effort to increase their personal holdings in order to follow the COMP coin’s recovery stage. Volume to market cap ratio is 0.3549.

The price of the COMP currency has fallen below the ascending parallel channel over the daily price chart. The coin needs to draw buyers in order to avoid a sharp decrease throughout the daily price chart. However, when bears are present and above usual, volume change is obvious. This demonstrates that short sellers are constantly exerting pressure on the COMP cryptocurrency. Meanwhile, 20 EMA is about to cross the 50 EMA downwards resulting in fall of COMP crypto.

Will COMP Recover Itself over the Charts?

Over the course of the daily price chart, the price of the COMP currency has been varying inside a rising parallel channel. To exit the rising pattern, the token needs to move in the direction of the top trendline. The momentum of the COMP coin’s downward trend is shown by technical indicators.

The falling velocity of the COMP currency is indicated by the Relative Strength Index. At 36, the RSI is almost in oversold territory. The COMP currency is currently moving bearishly on the MACD. After a negative crossover, the MACD line is lower than the signal line. Investors in COMPs should monitor the daily chart for any shifts in trend.

Conclusion

Compound’s price has fallen beneath a daily climbing parallel channel. COMP currency needs to entice more customers if it is to recover. COMP bulls must act to stop the token from falling dramatically. Support needs to be established there for the price of the COMP coin to remain above $40.00. However, when bears are present and above usual, volume change is obvious. This demonstrates that short sellers are constantly exerting pressure on the COMP cryptocurrency. The momentum of the COMP coin’s downward trend is shown by technical indicators.

After a negative crossover, the MACD line is lower than the signal line. Investors in COMPs should monitor the daily chart for any shifts in trend.

Technical Levels

Support Levels: $45.00 and $40.00
Resistance Levels: $55.00 and $60.00

Disclaimer

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

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing