- Compound revisited the area above $270.00 but failed to hold the ground.
- The technical indicators imply that the bearish correction is on the way.
Compound (COMP) takes the 34th position in the cryptocurrency market rating. according to CoinMarketCap data. The coin has gained over 20% in the recent 24 hours and over 40% on a week-on-week basis. The coin hit the intraday high of $272.97. At the time of writing, COMP/USD is changing hands at $255.11, while the downside correction is gaining traction.
Notably, the strong upside momentum in the recent hours attracted traders’ attention to the coin. Compound search query has been trending both on Twitter and in Google over the past 24 hours, which is no wonder as, from the technical point of view, COMP hit the long-term target of $270.00 and came close to an all-time high registered at $273.10 on June 2020.
COMP/USD: The technical picture
COMP/USD retested the recent recovery high of $268.63 from August 12 but failed to settle above this resistance area, which is regarded as a short-term bearish signal. The coin is vulnerable to the downside correction towards the local support created by a psychological $200.00. This barrier is reinforced by the middle line of the 4-hour Bollinger Band and 4-hour SMA100 located below this area. Once it is out of the way, the sell-off may be extended to %158.00-$160.00 (the lower boundary of the recent consolidation channel).
The RSI on the intraday charts stays on the overbought territory, though it has already reversed to the downside.
However, the bearish scenario will be invalidated if the price settles above $268.00. Once this resistance is turned into a new support, the upside momentum will statr gaining traction with the next focus on $300.00-$310.00.
COMP/USD 4-hour chart
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