• Compound price at the verge of seeing a squeeze higher as supportive measures do their work.
  • COMP price could rally up to 55% as only two obstacles are in the way.
  • Expect it to hit the upper target if equity markets coincide with the global rally.

Compound (COMP) price is set to rally firmly into the week as the positive sentiment from Friday spills over into Monday. ASIA PAC already saw bulls storming out of the gates and buying any price action available in a renewed hope for a quick end to the inflation drag. With commodities tumbling yet again, inflation pressures could start to ease and open up room for a recovery in risk assets, such as cryptocurrencies, setting up COMP price for a lucrative 55% gain.

COMP price needs to jump one hurdle

Compound price looks to be set up perfect for a rally of just 55%, as a technical setup is unfolding this morning. After price action shot through $50.63, it came back down for a retest over the weekend, found support, and now looks set to pop above the high of last week. With a perfect playbook long-strategy, traders could be bracing for a rally up to $60, which coincides with the 55-day Simple Moving Average (SMA).

COMP price will see traders probably taking a bit of profit around that 55-day SMA, as it is a crucial level to surpass if price action wants to rally further. Should equities keep rallying throughout the week, expect to see a spillover effect, aiding COMP price action with tailwinds, and lifting it above that technical hurdle. From there, a region opens up with no real resistance before roughly hitting $79, with the monthly pivot and a critical historical level coming into play.

COMP/USD daily chart

COMP/USD daily chart

Since last week’s rally has been so quick and stretched, the Relative Strength Index has been overheating quite quickly and could hit the overbought level even before the $80 handle is reached. That would lead to the rally losing steam and possibly see bigger profit-taking, with COMP price action collapsing to $50.63, to look for support again. Should that level not hold, expect to see a full paring back towards $30 as the whole rally gets unwound.



 


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset tokenization, an emerging narrative in the ecosystem. 

More Ripple News

ONDO extends gains despite surge in profit-taking

ONDO extends gains despite surge in profit-taking

ONDO, the governance token of Ondo Finance, trades in the green on Friday, defying the effects of a surge in profit taking from large-wallet investors following the 76% gains seen in the past 30 days. 

More ONDO News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for potential short-term correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for  potential short-term correction

Bitcoin price daily candlestick closes below the weekly support level of $67,147. Ethereum price is weakening and could retrace to its immediate support at $3,321. Ripple price fails to close above the 50-day Exponential Moving Average.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP