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DeFi-token COMP falls to new record lows

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DeFi Token Roundup – 11 February 2021

DeFi-token COMP falls to new record lows

DeFi-token COMP falls to new record lows
CONTENT

  • COMP rate broke under $ 130 and renewed its all-time low.

  • The price is trading within a falling wedge.

  • Resistance is marked at $ 145 and $ 165.

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Compound (COMP) broke through long-term support and updated all-time lows. However, the price remained inside the bullish pattern and may break it.

From all-time highs to all-time lows

The DeFi-token COMP rate renewed its all-time high of $ 272.61 on September 1 amid the ongoing boom in the decentralized finance segment (DeFi). However, this was followed by a sharp drop, causing the breakout of many support levels.

Price recently tried to rebound on September 23, but did not succeed. It failed to maintain the growth momentum and soon collapsed under the support of $ 130, which activated the bears.

As a result, the COMP rate was at a new all-time low of $ 101.16.

DeFi-token COMP falls to new record lows

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The trend will be considered bearish until the price recovers above the $ 130 area. Moreover, even in this case, several areas of resistance will await it in the north, starting with an area of ​​$ 163.

COMP. Source: TradingView

There are no signs of a bullish reversal, at least not on the daily chart.

RSI and Stochastic Oscillator are declining, and MACD made an unsuccessful attempt to rise, but began to decline again.

COMP. Source: TradingView

What’s next?

Cryptocurrency trader @IncomeSharks shared a COMP chart on Twitter showing the likely support level near current levels.

Source: Twitter

After the tweet was posted, the price managed to go below this level, however, it seems that the market has formed a falling wedge, which is considered a bullish reversal pattern. Now the price is approaching the wedge border and is trading just above the support line.

The RSI provides bullish divergence signals within the oversold zone. This promises the price of success in a possible bullish breakout. In this case, the closest resistance for COMP will be the area of ​​$ 145 and then $ 185.

COMP. Source: TradingView

DeFi-token COMP falls to new record lows

The short-term chart supports this likelihood as it shows a clear bullish divergence in the RSI where the upward support line is forming. In addition, MACD entered the green zone.

In this regard, growth in the direction of the wedge resistance line and its subsequent bullish breakout is very likely..

COMP. Source: TradingView

Thus, the COMP rate updated its historical minimum, but at the same time retained the potential for a bullish breakout of the current price pattern. This can cause the growth of the token to the above resistance levels.

Nevertheless, such dynamics of COMP can become another reminder to the participants of the crypto market about the need not to rush to all the hard when it comes to new and not yet tested tokens..

You can read the latest Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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