COMP/USD - Slowdown formation (CAUTION)
Hello, Traders!
Today, we're gonna look at the COMPOUND decentralized protocol. COMP had a great start finding its all-time low early on at $61 (still a 100% return from the $30 USD ICO). COMP then began to be listed onto various exchanges and was subjected to ferocious buying activity seeing COMP soar all the way to $372 USD only 6 days after the token ICO finished. This was a 1100% return from the ICO price – in less than a week! However, since then, COMP has consistently lost its value, falling from $372 USD towards $135 USD representing a 63% decrease from ATHs in June.
However with many DeFi coins performing spectacularly recently (especially the one later on in the report…), what does the future price action hold for COMP?
The contraction of PPs can suggest that the current trend could be coming to an end. However, as demonstrated below it appears that there will be a short term sideways trading period – likely until the end of these PPs. Since COMP entered the market it has created numerous formations. The main formations have typically been parallel channels with the addition of one descending triangle. However, the significance of these previous formations is the ever-decreasing angle of the resistance lines as shown on the chart.
The indicators are currently very mixed, pointing towards both directions. To take a position now would be highly risky, waiting for a breakout to occur should decrease the risk. This breakout will also change the indicators and increase the following in one particular direction.
What would you suggest the market hit later this week?
Watch out for the market and good luck!
Today, we're gonna look at the COMPOUND decentralized protocol. COMP had a great start finding its all-time low early on at $61 (still a 100% return from the $30 USD ICO). COMP then began to be listed onto various exchanges and was subjected to ferocious buying activity seeing COMP soar all the way to $372 USD only 6 days after the token ICO finished. This was a 1100% return from the ICO price – in less than a week! However, since then, COMP has consistently lost its value, falling from $372 USD towards $135 USD representing a 63% decrease from ATHs in June.
However with many DeFi coins performing spectacularly recently (especially the one later on in the report…), what does the future price action hold for COMP?
The contraction of PPs can suggest that the current trend could be coming to an end. However, as demonstrated below it appears that there will be a short term sideways trading period – likely until the end of these PPs. Since COMP entered the market it has created numerous formations. The main formations have typically been parallel channels with the addition of one descending triangle. However, the significance of these previous formations is the ever-decreasing angle of the resistance lines as shown on the chart.
The indicators are currently very mixed, pointing towards both directions. To take a position now would be highly risky, waiting for a breakout to occur should decrease the risk. This breakout will also change the indicators and increase the following in one particular direction.
What would you suggest the market hit later this week?
Watch out for the market and good luck!
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