COMP token price forms a descending triangle pattern in the daily chart. The triangle breakout will soon decide the future trend.

Compound claims that the vast majority of cryptocurrencies sit on exchange platforms doing nothing for their owners. It hopes to change that with its open lending platform. Anyone who deposits supported Ethereum tokens can easily earn interest or get a secured loan. It is completely trustless.

Compound's community governance is unique among similar protocols. The native governance token of Compound, COMP, allows holders to propose changes to the protocol and to debate and vote on whether or not to implement them. This is without the involvement of the Compound team. You can make changes to the distribution of COMP tokens, adjust collateralization factors, and choose which cryptocurrencies you want to support.

Let us now look at the technical analysis of COMP cryptocurrency.   
<h2>Past Performance of COMP</h2>
Since September 7th, COMP coin prices have been trending lower due to the bearish downfall. By forming lower lows under the strong bearish influence. However, the coin price approaches the support zone near $250. Thus, moving in a range in the weekly timeframe. 

<img class="tv-snapshot-image aligncenter" src="https://s3.tradingview.com/snapshots/e/eLjnjZE6.png" alt="TradingView Chart" width="1244" height="650" />

Source - <a href="https://www.tradingview.com/x/eLjnjZE6/">Tradingview</a>
<h2>COMP Technical Analysis</h2>
At the time of writing, COMP cryptocurrency is at $323. Additionally, it has <a href="https://www.cryptoknowmics.com/news/comp-technical-analysis-forming-a-narrow-range-on-the-daily-chart-a-breakout-below-support-of-199/">experienced a gain</a> of 4.03% since the opening. Thus, resulting in a bullish candle formation.

The push from the $250 support zone can result in a bullish reversal within the range. Thus, resulting in a possible up move of more than 50% in COMP token prices. However, a breakout below the $250 support zone can result in a bearish downfall of more than 30%. 

The RSI slope approaches the central line as it climbs higher from the oversold boundary at 30%. The RSI indicator has moved higher to 41% indicating a rise of underlying bullishness.

COMP crypto trades below the crucial Exponential Moving Averages on the daily chart. Furthermore, the 50-day EMA has given a death cross with the 200-day EMA.

The MACD and signal lines are below the zero mark on the daily chart. The lines could maintain a bearish alignment. Thus, indicating a sell signal.
<h2>Upcoming Trend</h2>
Compound's technical analysis indicates that the COMP token may show a bearish breakout. There is an increase in bearishness after the recent death cross. However, the price action offers the last chance for bullish reversal near the $250 support zone.

COMP Technical Analysis: Prices Heads Lower to $250

Compound (COMP) token price forms a descending triangle pattern in the daily chart. The triangle breakout will soon decide the future trend.

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

COMP Technical Analysis: Prices Heads Lower to $250

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