- COMP has a strongly bullish outlook on the higher timeframes.
- In the short-term, a price dip to $108-$110 is likely.
Compound [COMP] was on a strong bullish trend after breaking the 4-month range highs at $54.6. On Wednesday, the 4th of November, COMP gained 37.7%, going from $87.34 to $120.28. The price had surged all the way to $144 but selling pressure forced the bulls backward.
Despite the recent massive gains, Compound crypto is still down 87% from its all-time high of $910.5, set in May 2021.
The recent trend of older tokens such as Stellar [XLM], Algorand [ALGO], and Ripple [XRP], dubbed “dino tokens” by some market participants due to how long they’ve been part of the crypto ecosystem, could be followed by the trend of DeFi tokens such as COMP seeing a swift rally.
Compound crypto breaks March high to set a new yearly high
Source: COMP/USDT on TradingView
Using the downtrend from March to August, a set of Fibonacci retracement levels were plotted. Compound crypto had retraced all the way to $33.8, the area which it had traded at in September 2023.
This retracement was followed by a consolidation phase around the $40 mark. The range formation extended from $33.84 to $54.44, with the mid-point at $44.36.
The multi-month consolidation around the $40 mark gave bulls the time to force a strong rally in the second half of November.
Since the range breakout on the 22nd of November that saw the token hit $64.6 on that day, Compound crypto is up 77%. The A/D indicator was in a steady uptrend in recent months even while prices consolidated, indicating accumulation. The MACD showed strong bullish momentum as well.
The 123.6% extension level at $119.9 served as resistance at press time. In the short-term, the $108 and $90 levels are expected to act as support.
Price prediction for 2025
Source: COMP/USDT on TradingView
The weekly chart showed that the key weekly resistance at $103.48 was on course to be beaten. A weekly session close above it would be a strong sign. To the north, the next resistance levels are at $174.8, $200, and $235.
Read Compound’s [COMP] Price Prediction 2024-25
The A/D indicator was in a steady uptrend on the weekly timeframe as well. Meanwhile, the RSI was at 80, above any highs it has made in close to four years. It is likely that Compound crypto will reach $200 in the coming weeks.
Sustained buying pressure is necessary to propel it beyond $235, and it is unclear if Compound can gather enough buyers to push beyond it. A move beyond $235 will open up the path to much higher targets such as the $500 level.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
