- COMP has a strongly bullish outlook on the higher timeframes.
- In the short-term, a price dip to $108-$110 is likely.
As a seasoned crypto investor with over five years of experience in this dynamic market, I’ve seen my fair share of bull runs and bear markets. The recent surge in Compound [COMP] has certainly caught my attention. After breaking the 4-month range highs at $54.6, it’s impressive to see COMP gain 37.7% within a day, reaching as high as $144.
After breaching the four-month peak at $54.6, Compound (COMP) was on a robust upward trajectory. On November 4th, it experienced a significant surge, rising by 37.7% from $87.34 to $120.28. The price climbed as high as $144, but intense selling pressure caused the bulls to retreat.
Despite the recent massive gains, Compound crypto is still down 87% from its all-time high of $910.5, set in May 2021.
It’s possible that the current surge in older cryptocurrencies like Stellar [XLM], Algorand [ALGO], and Ripple [XRP], often referred to as “dinosaur tokens” because they’ve been around for a while in the crypto market, could be followed by an equally rapid rise in DeFi tokens such as COMP.
Compound crypto breaks March high to set a new yearly high
By studying the declining price pattern between March and August, Fibonacci retracement lines were drawn. Remarkably, Compound Crypto dipped as low as $33.8, a level where it had previously been trading back in September 2023.
After this pullback, there was a period of stability around the $40 level. The price movement formed a range that spanned between $33.84 and $54.44, with the middle point being approximately $44.36.
Over a span of several months, the price stabilized near the $40 level, providing ample opportunity for bullish investors to gather strength. Consequently, they orchestrated a robust surge during the latter part of November.
Starting from the 22nd of November, when Compound crypto experienced a breakout resulting in a peak price of $64.6 on that day, it has seen a substantial increase of 77%. Over the past few months, the Accumulation/Distribution (A/D) indicator has been trending upward steadily, even during periods of price consolidation, suggesting an accumulation of tokens. Furthermore, the Moving Average Convergence Divergence (MACD) line showed robust bullish momentum.
At the current moment, the price level of $119.9, which represented a 123.6% extension, was acting as a barrier for further increases. In the near future, the prices might find support at the levels of $108 and $90.
Price prediction for 2025
The graph for the week indicates that the significant weekly resistance at $103.48 is likely to be surpassed. If we close the weekly session above this level, it would be a powerful signal. Further up, potential resistance levels can be found at $174.8, $200, and $235.
Read Compound’s [COMP] Price Prediction 2024-25
On a weekly basis, the A/D indicator consistently climbed upward, too. At the same time, the RSI stood at 80, surpassing its highest levels in almost four years. It seems plausible that the price of Compound crypto could reach $200 within the next few weeks.
For Compound to surpass $235, a continuous surge in buying interest is crucial. However, it remains uncertain whether Compound can attract enough investors to drive its price beyond that point. If it does manage to break through $235, it could pave the way for even higher goals like the $500 mark.
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2024-12-05 15:03