In this new Monday AT, we will be interested in COMP, the decentralized finance cryptocurrency that comes from the protocol. Mixed. The market is greener at the beginning of the year, this cryptocurrency is no exception to the rule, bouncing back like the vast majority of altcoins. However, since nothing is ever decided in the markets, one must always remain vigilant. Is the asset nearing the end of an uptrend that started a few days ago? Without further ado, let’s jump into TradingView to try to answer it.
COMP is still below daily resistance
First of all, we can look at the asset on a daily basis to take into account the evolution of the price in recent weeks. From November to December, the asset is sideways between the support and resistance below, which is the pivot zone represented on the chart. $39.90. After several failed bullish attempts, the asset broke the reversal zone in the negative direction after rejection.EMA32.
In recent days COMP became a new series with his support $30.50 and resistance 3$3.60. However, the asset was able to break out of this technical pattern to the upside as it retook the EMA triple for the first time since October.
This dynamic paved the way for a stronger rebound, which brings it COMP finish below the current pivot zone. Will he get away with it? This is a relevant issue for those who want to see the asset at higher levels. As long as COMP If it doesn’t close above this level for a few days, we can maintain the downtrend by reversing within the range. If COMP can overcome this, there is a chance that the price will bounce back initially $39.90.
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Fairly favorable upper case in H4?
Now, for this second part of the analysis, we will look at a smaller time unit that allows us to determine the price dynamics over the last few hours. Going above the range, COMP got rid of the technical mess when he restored the EMA200 a few hours later. If COMP manages to capture the pivot zone we talked about earlier in addition to resistance $39.90 and this is HVN, we can determine the average level Control Point volume profile.
This POC is located at $38.20s, this is the key level that buyers need to retrace in order to continue to drive the asset into higher price areas. If COMP can easily recapture $40 over the next few weeks, the asset has a chance to return to VAH at $42.75.
However, the pivot zone will have to be reclaimed fairly quickly. If the COMP can’t get rid of it, we will certainly see the price return to the EMA200, if this dynamic level does not hold, to the upper limit of the previous range. Technical convergence is a technical area that should not be lost, as acceptance of the price below will lead to strong seller capture and return of COMP on MA100 H4. In this case, nothing will prevent the asset from returning to the lower limit.
Here we are at the end of this COMP cryptocurrency analysis. You can see that the daily and H4 momentum are both very interesting. However, only one level acts as a barrier: the pivot zone $36.30/$36.90. The evolution of the asset over the next few weeks will depend on whether the price can overcome it. Moreover, turbulence may be observed in the market in the coming days Gemini business as well as the release of some economic data on Thursday afternoon. Hence, caution should be exercised and risk management should be perfect. At the moment, it is better to maintain the bearish trend, which may show an uptrend until the end of the week.
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