TradeCityPro | COMP: Navigating Consolidation👋 Welcome to TradeCityPro!
Today, I'll be analyzing the COMP token, a core component of a well-known DeFi project specializing in lending and borrowing, currently ranked 200th with a market cap of $100 million.
📅 Weekly Timeframe
In the weekly timeframe, we see a bearish trend that later transitioned into a consolidation box, with the current box's floor at $30.96 and the ceiling at $90.56. After the price was rejected from the all-time high of $800 and fell to $30.96, trading volume was initially high, affirming the downtrend.
🧩 However, after forming this box between the two levels, the volume decreased, indicating that whales and market makers have likely withdrawn their investments from this coin for now.
🔍 The primary support, as mentioned, is at $30.96, and if this level breaks, the downtrend is expected to continue. As observed, the price previously rose to the resistance at $90.56 and broke it, but then returned to the box, making this move a fake breakout.
📊 Currently, an important floor in the weekly timeframe is observed at $40.38, which is a good support. A break below this area could introduce significant bearish momentum and panic into the market. Additionally, the RSI indicator shows important support at 37.89, which, if broken alongside the $40.38 area, could early confirm a further bearish leg.
🔼 On the flip side, if the price is supported above this level and moves towards $90.56, breaking this area could enable us to hit the targets set for this coin. As shown in the chart, significant resistances are located at $252.60 and $800. However, for the coin to reach these figures, significant market cap growth is necessary.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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