COMP Breaks 40 Day Falling Wedge Pattern-COMP has revived nearly 70% since its low of $195
-Price has recently broke a falling wedge pattern
-COMP needs to stay above 200MA to continue revival
Compound has recently grown much in light of its DeFi capabilities the last year. The price has seen some growth but not as much as its competitors as it is up a mere 85% over the past year. Unfortunately 99% of cryptocurrencies follow BTC’s price action which has left the majority of the market flat, including COMP. Although, a break out of its falling wedge pattern may signal a trend change Is upon us.
After breaking free of the 45 day falling wedge, COMP slashed right through its major resistances of $265 & $285. Since then, COMP has been playing with its major resistance zone of $330-$357. Compound must break and HOLD this area to be clear for significant revival. This area has proved to be an important zone the last 5 months and until COMP can fully clear this mark, it is still considered in a bearish downtrend.
Along with this major resistance zone, COMP has been attempting to hold above its 200MA for the first time in nearly 45 days. If price fails to hold this MA and falls below, it is very likely to see a retracement back to the major support of $285. In the case bears continue to hold control, COMP will test the $265 mark and will be in danger of a larger fall if that major support can not hold.
While looking at the RSI, it is easy to see a trend line has been respected since the low of $195 had formed. If strength stays above this trend, all is well and COMP will be in a great position to continue revival. The MACD is signaling a slight bearish bias as the MA’s have created a slight double top and have also crossed bearish. A retest of the 0 value looks likely.
COMP intraday levels
Spot rate: $327
Trend: Bullish
Volatility: Medium
Support: $285
Resistance: $330
