Compound (COMP) crypto has pumped 4.56% today following the successful finalization of the Ethereum merge earlier this morning.
As a result the price of Compound is now trading at a steady $56.67 and could be making headway back to the $60 price levels.
Will Compound crypto pump?
At the time of writing this article Compound crypto is trading within a symmetrical triangle pattern.
Because Compound crypto was in a downtrend prior to the formation of this triangle, it could be considered as a bearish continuation chart pattern, though I don’t think this will be the case as it seems like Compound may have bottomed out.
Following the Terra Luna crypto crash in May 2022, Bitcoin nosedived through the 200-week moving average and caused havoc across the entire crypto markets in the following month.
This is where Compound (COMP) crypto potentially bottomed out hitting a low of $26.25. Holders who were lucky enough to have scooped up that dip on the 18th June 2022 would now still be up by a generous 115%.
COMPOUND/U.S. DOLLAR – Daily Time Frame. As we can see the trajectory of Compound has been very bullish since the lows of June 2022.
If Compound (COMP) crypto can maintain bullish price momentum there is a good chance that we might retest the resistance trendline of the symmetrical triangle at $68.22.
A successful breakout backed by a large amount of trading volume could indicate that Compound (COMP) crypto might try to retest a key resistance level at $81.36 followed by the next technical target of $93.22.
Compound (COMP) is still significantly down from the all-time high of $913 set on the 10th of May 2021. The overall reduction in price has amounted to a staggering 93.57%.
The current low prices of Compound (COMP) crypto could serve as lucrative to the patient long-term investor. Bear markets tend to be long and slow, but do offer strong opportunities where many major blue-chip cryptocurrencies are in an undervaluation reaccumulation phase.
Upon failure of breaking through the $68.22 resistance level a bearish scenario is that Compound (COMP) crypto retests a lower support range at $52.44 followed by the support trendline of the symmetrical triangle at $46.49.
COMPOUND/U.S. DOLLAR – Daily Time Frame, Relative Strength Index Chart.The relative strength index still looks healthy in contrast to the price, though I always favor dollar collar cost averaging in at RSI levels below 30.
As we can see from the price chart displayed above both of the oversold positions on the daily time frame provided traders with big returns.
Compound Crypto Video AnalysisCompound (COMP) crypto now has a $415 million market capital following the recent pump in the crypto market. According to Coinmarketcap COMP has also reclaimed the top 100 crypto position and is ranked #87.
Whilst I do not think Compound crypto will achieve any new all-time highs this year, I speculate that there is a lot of room for growth in the long-term future where a 10x might be possible.
An exciting cryptocurrency known as Tamadoge is pending to hit the crypto markets later this year where we could also see exponential growth similar to Compound crypto once it goes to public sale.