Compound Price Forecast: COMP breaks out of head-and-shoulders pattern targeting $250
- Compound price is on its way to hit $250 as there is very little resistance to the upside.
- The digital asset has broken out of a critical bullish pattern on the 1-hour chart.
Compound has been trading inside a reverse head and shoulders pattern on the hourly chart since January 10. Finally, COMP had a breakout above the neckline resistance level at $198 while bulls target $250.
Compound price faces almost no opposition towards $250
On the hourly chart, Compound bulls have managed to push the digital asset above the critical resistance level at $198 which was the neckline of the head and shoulders pattern. The breakout took Compound price up to $214.
COMP/USD 1-hour chart
Using the height of the pattern as a reference point, it can be determined that the bullish price target is $250. According to various metrics, there is very little resistance towards this level.
COMP IOMAP chart
The In/Out of the Money Around Price (IOMAP) chart showed the strongest resistance area to be located between $189 and $194. Above that point there seems to be almost no opposition.
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COMP Holders Distribution chart
Additionally, the number of whales holding between 10,000 and 100,000 COMP has been increasing significantly since December 2020 from a low of 55 to 62 currently. This indicates that large holders are extremely interested in buying the digital asset despite the rise in price in the same time period.
COMP/USD daily chart
However, on the daily chart, the RSI and the price of COMP have formed a bearish divergence. Compound price has established higher highs while the RSI formed lower highs. Additionally, every time the RSI is close to overextended, COMP suffers a pullback.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
