<em><strong>COMP technical analysis shows a bullish reversal from $44, resulting in a power struggle at $50 to beat the 50-day SMA.</strong></em>

The falling trend in the COMP prices takes support at the $44 mark resulting in a sharp bullish rise within the last night. The 12% jump overnight results in a bullish engulfing candle, but the follow-through candle faces opposition from the 20-day SMA. So, will this overnight jump succumb under the increased supply at the SMA?
<h3>Key Points:</h3>
<ul>
 	<li>The COMP price action forms a bullish engulfing candle in the daily chart.</li>
 	<li>The higher price rejection from the 20-day SMA warns of a bullish failure.</li>
 	<li>With a market cap of $358 million, the intraday trading volume of Compound has increased by 63% to reach $171 million.</li>
</ul>
<img class="alignnone" src="https://s3.tradingview.com/snapshots/x/X7z5rOb2.png" alt="COMP/USD Price Chart" width="2047" height="1057" />

Source - <a href="https://www.tradingview.com/x/X7z5rOb2/" target="_blank" rel="nofollow noopener">Tradingview</a>
<h2>COMP Technical Analysis</h2>
The COMP prices maintain an overall downtrend in the daily chart after facing opposition from the 100-day SMA near the $65 mark. The bearish turnaround from the opposing SMA results in a drop to the $44 support level.

However, the recent increase in buying pressure resulted in a 12.92% jump overnight to create a bullish engulfing candle in the daily chart. But the 20-day SMM opposites bullish follow-through led to a higher price rejection candle.

Furthermore, the increase in intraday trading volume supports the higher price rejection increasing the possibility of a bearish turnaround. If the buying pressure increases, the possibility of <a href="https://www.cryptoknowmics.com/news/finance-minister-of-india-says-crypto-buyers-should-exercise-caution/" target="_blank" rel="noopener">buyers</a> undermining the opposing SMA will increase, leading to a pump above $50.

Conversely, the falling prices breaking below the $44 support level will retest the crucial support level of $27.
<h2>Technical Indicators</h2>
The RSI slope spikes from the oversold zone to exceed the 14-day average line but remain below the halfway line. Moreover, The MACD indicator displays a high possibility of a bullish crossover between the fast and slow lanes as a negative histogram decline.

Hence the technical indicators maintain a bullish outlook for the upcoming friend despite the higher price reduction in the COMP daily candle.

Resistance Levels: $50 and $60

Support Levels: $44 and $27

COMP Technical Analysis: Pump At $44 Struggles At 50-day SMA 

According to the technical analysis, COMP prices show a bullish reversal from $44, resulting in a power struggle at $50 to beat the 50-day SMA.

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: Pump At $44 Struggles At 50-day SMA

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