Compound (COMP), known for being one of the big actors in the DeFi scene, marked a 19.7% surge yesterday. Amidst its consolidation around the $46-$48 level, the crypto asset could be setting the stage for bullish momentum, providing a buy opportunity for an array of investors. However, the road to more gains is not precisely clear.
On the technical front, Compound’s 20-day EMA is currently at $41.53, below the 50-day EMA at $43.63, and the 100-day EMA at $46.91. Often, this positioning denotes a bearish sentiment. Nevertheless, COMP sits above these EMAs, thus pointing out a possible trend change that could benefit buyers.
The RSI, a measure of price momentum, pulled back to 62.98 from overbought territory at 71.42. This cooling off period can be beneficial for the asset, paving the way for future gains. Furthermore, the MACD, another momentum tracker, shows a bullish trend, adding to the optimistic outlook for Compound.
Despite a 2.71% market cap drop to $371.8 million and a 2.11% decrease in 24-hour volume to $114.3 million, the COMP price has managed to stay strong. However, with the declining volume and market cap, some might discern a retracement following the breakout. While it could make investors uneasy, this retracement could make way for a healthier and more sustainable price surge.
The immediate resistance might be encountered at the horizontal zone between $51.80 and $54.66. If prices can surpass this resistance, bullish momentum could be fueled further. However, on the flip side, immediate support lies between $46.70 to $48.56. A failure to uphold this support area might pull prices down to the 100-day EMA level at $46.91.
While Compound holds the spotlight, another platform is gradually making a name for itself: Launchpad XYZ. It offers a comprehensive dashboard and an array of services which aims to simplify navigating the complex cryptocurrency market. Launchpad XYZ’s proprietary token, LPX, serves as an investment and utility token and offers its stakers exclusive access to various platform features.
It’s worth noting, in such a volatile market, both Compound’s technical upside and Launchpad XYZ’s growth potential carry a considerable amount of risk. Thus, thorough research and caution are advised. Cryptocurrency investments are a high-risk asset class that could result in losing the entirety of your capital.
Source: Cryptonews
