Compound Technical Analysis: COMP/USD succumbs to selling pressure, down 55% since its peak at $385

COMP/USD is currently trading at $173 after an extended downtrend on all timeframes.
Compound only started trading two weeks ago.

Lorenzo Stroe Independent Analyst

Compound had an explosive start with an initial market capitalization of $590 million and getting up to $910 million. The trading volume has increased tremendously over the past few days from $5 million to $243 million on July 2, however, this hasn’t translated in more gains but rather an extended downtrend.

COMP/USD daily chart

What looked like a normal pullback after such a significant bull move, it’s now a confirmed downtrend. Bulls obviously don’t have many support levels and they need to climb above the daily 12-EMA at $214.

COMP/USD 4-hour chart

Here the 12-EMA has acted as a strong resistance level for a few days. Right now, COMP is basically in freefall mode but the RSI is oversold and could indicate that a possible bounce is coming.

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.

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