Compound is a robust blockchain technology-based platform for the development of smart contracts and decentralized applications. It is an ecosystem that allows users to upgrade the open-source protocol and collect COMP tokens as incentives. The Compound community can delegate, propose, and vote on all changes pertaining to the protocol. COMP technical analysis:
On March 29, 2021, COMP started trading at $362.52. As of April 4, 2021, the closing price of COMP was $548.13 Thus, in the past week, the COMP price has soared by approximately 51%. In the last 24 hours, COMP is trading between $489.87-$562.85.
Day-Ahead and Tomorrow
Currently, COMP is trading at $528.39. The price has fallen from the opening price of $548.44. Thus, the market looks bearish.
The A/D line is upward sloping. Thus, whale accumulations are higher than whale distributions. Hence, buying pressures are high. We can expect the price to start rising soon as there is a positive divergence here.
The MACD and signal lines have just turned negative. A bearish crossover by the MACD line over the signal line has also occurred. Thus, the overall market momentum is bearish. Hence, we can expect the COMP price to dip further.
The RSI indicator is currently at 39%. The RSI faced rejection at 36% and started rallying. Thus, even though selling pressures are high, buying pressures are gradually mounting. As of now, we can expect the price to fall further. It may start rising in some time.
COMP Technical Analysis
The price has fallen below the Fibonacci pivot point of $533. As most of the indicators have given negative signals, we can expect the price to fall below the first support level of $504.42 soon.
The price has tested and fallen below 38.2% FIB retracement level of $534.48. If by day end, the price tests and falls below the 76.4% FIB retracement level of $506.11, then the downtrend is strong. In that case, we can expect the price to downswing tomorrow as well.