- COMP price gets knocked by the high-time-frame resistance barrier at $55.95.
- This retracement could push the Compound token as low as $35 or the 70.5% retracement level.
- A four-hour candlestick close above $55.95 that flips this hurdle into a support floor will invalidate the bullish thesis.
COMP price has been on a vertical ascent since the collective crypto market bottomed out on June 19. This uptrend faced a significant hurdle, however, which has caused Compound bulls to evaluate their momentum.
COMP price slows down
COMP price rose 115% in just a week, starting on June 19 and set a swing high at $56.34. This impressive climb paused around $43.28, retraced 13% and continued its second leg-up, doubling the value seen on June 19.
However, the ascent faced intense sell pressure around the high-time-frame resistance level at $55.95. As a result, COMP price has pulled back roughly 18% and is currently hovering around $47.63.
Going forward, investors can expect COMP price to continue its descent, at least until Bitcoin finds a stable support floor. A breakdown of the 8-day Exponential Moving Average (EMA) will signal the start of the next leg down.
In such a case, COMP price is likely to revisit $41.02 or the range’s midpoint. A sweep below the 62% retracement level at $37.46 seems plausible in cases where BTC tags the $18,514 level.
All in all, Compound token seems to be ready for another 20% decline from its current position.
COMP/USDT 4-hour chart
While things are looking incredibly bearish for the entire market, some altcoins are holding up relatively better than other tokens and Compound is one of them.
If buyers make a comeback and propel COMP price to produce a four-hour candlestick close above $55.95, it will signal that sellers are weak. If this development flips the said level into a support floor, it will invalidate the bearish thesis and potentially extend COMP price to $67.92.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Pi Network Price Forecast: PI holds a crucial support level amid rising selling pressure
Pi edges lower to retest a crucial support level as it decouples from the broader market recovery. PI token unlocks and increasing balance on CEXs boost selling pressure.
Dogecoin, Shiba Inu face profit-taking risk as Bitcoin's rally takes a breather
Dogecoin and Shiba Inu are frontlining meme coins losses on Tuesday, following a strong uptrend the previous day. The surge in the prices of DOGE, SHIB and other crypto assets followed in the footsteps of Bitcoin, which hit a new record high of $123,218 on Monday.
Meme Coins Price Prediction: Solana-based BONK, PENGU, WIF could lead the next market bull run
Bonk’s breakout rally gains traction, printing its fourth consecutive bullish candle. Pudgy Penguins' steadies amid the announcement of the upcoming launch of a multiplayer game, eyes further gains.
Crypto Today: Bitcoin, Ethereum, XRP trim gains amid declining ETF inflows and profit-taking
Bitcoin encounters volatility and slips toward $116,000 as investors book profits from the rally to record highs. Ethereum bears take back control as ETH drops below $3,000 ahead of US CPI data.
Bitcoin: BTC hits new all-time high and enters price discovery mode
Bitcoin price prints a new all-time high near $118,900 on Friday, entering uncharted territory as bullish momentum accelerates. The surge in BTC was supported by rising corporate and institutional demand, with spot Bitcoin ETFs recording a total of $1.69 billion this week as of Thursday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.