- The Compound (COMP) price has increased significantly this year and is approaching the all-time high resistance area at $ 265. Price action and technical indicators are showing a bullish trend for both COMP / USD and COMP / BTC, supporting the continuation of their upward movement.
The Compound (COMP) price has increased significantly this year and is approaching the all-time high resistance area at $ 265. Price action and technical indicators are showing a bullish trend for both COMP / USD and COMP / BTC, supporting the continuation of their upward movement.
All-time highest resistance of COMP
COMP has been moving upwards since dropping to $ 80.62 on November 3, 2020. After four unsuccessful attempts, it finally managed to move above the $ 180 area on January 10th.
He endorsed this as support and continued its upward movement at an accelerated rate. The closest area of resistance is $ 265, which coincides with the all-time highs reached in August 2020.
The presence of these bullish indicators indicates that COMP will likely reach the $ 265 area.
Short duration of action
The short-term two-hour chart also supports continued upside momentum. COMP is following a rising support line and possibly left the area that looks like a rising triangle.
The resistance is $ 226 ‘. As long as it is trading above this area / line, the short-term outlook continues to rise. Similar to the daily time frame, technical indicators are bullish.
The wave count indicates that COMP is in the extended 3rd wave (shown in white below) of the upward impulse that started on November 26th. A possible target for the impulse is $ 310, which is the 2.61 fib extension of wave 1.
The sub-wave number is given in orange, indicating that COMP is currently in wave 3. A possible target for the crest of wave 3 is between $ 259-263, found with a combination of fib extensions and external retracts.
Cryptocurrency trader @JJJCycles plotted a COMP / BTC chart indicating that the price is facing resistance despite the trend looking strong.
Since the tweet, it has reclaimed the support area at 0057 and has been moving upwards ever since. If it continues to rise, the next resistance area will be 0.0074, which is the 0.618 Fib retracement of the downward move.
Technical indicators support the continuation of the upward movement. Therefore, as long as prices are trading above 0.0057, the short-term trend is in an upward trend.
As a result, both COMP / USD and COMPT / BTC could continue to rise towards the closest resistance zones with $ 265 and ₿0.0074 respectively.