- Compound was one of the most successful DeFi projects reaching a market capitalization of $804 million.
- COMP quickly retraced and lost around 50% of its initial value one month after its listing.
COMP/USD daily chart
COMP bulls have been holding a crucial support area around $159 for quite some time. The price has poked through the support level a few times, but bulls have always managed to push it back up.
COMP IOMAP chart
Looking at the IOMAP chart, we can see the biggest support area is around $159; however, resistance and selling pressure is clearly far stronger and indicates COMP is at risk of quickly dropping below $159.
On the other hand, the pullback from $272 was accompanied by a slow decrease in trading volume, indicating a lack of strength by the bears. The 10-SMA and the 50-SMA are both acting as resistance levels. A bounce from $159 could push the digital asset towards $170.
COMP/USD 4-hour chart
Unfortunately, it seems that bears have the upper hand as COMP is currently trading right below $159 and is struggling to recover. The RSI is not yet overextended, and the next support point is down at $153.72, but this is not a healthy support level. A clear break and close below $159 would be catastrophic considering the intense selling pressure and will push COMP to the low of $145 and possibly below.
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