Is It Too Late to Buy Compound? COMP Price Nearly Gains 20% and AI Crypto Signals Platform Launchpad Secures $1.78 Million
With its 19.70% breakout yesterday, Compound (COMP) presents a strong buy opportunity during its consolidation around the $46-48 level.
COMP has firmly reset its technical indicators into bullish territory, and buyers may want to look to accumulate on dips before the next leg higher.
To buy Compound at optimal levels, patience is key as the COMP price stabilizes after the powerful breakout.
Comp's 20-day EMA currently stands at $41.53, below the 50-day EMA at $43.63 and the 100-day EMA at $46.91. Typically, a short-term EMA positioned below the long-term EMA suggests a bearish sentiment.
However, given the recent breakout and the COMP price currently positioned above these EMAs, the scenario signals a potential bullish momentum.
The RSI shows an interesting shift for those looking to buy Compound. The RSI has pulled back to 62.98, from yesterday's overbought levels at 71.42 following the substantial 19.70% surge.
This retreat from overbought territory is a healthy indicator that might suggest the possibility of a continuation of the rally, assuming the COMP price maintains its current levels.
Meanwhile, the MACD histogram shows a value of 1.20, up from yesterday's 1.07. The MACD's upward trajectory indicates bullish momentum, further supporting the case for traders looking to buy Compound.
Despite the 2.71% market cap drop to $371.8 million and the 2.11% decrease in 24-hour volume to $114.3 million, the COMP price has managed to hold relatively steady above its immediate support level.
The modestly decreasing volume and market cap might suggest a healthy retracement following the breakout, potentially paving the way for a sustained upward move.
The immediate resistance level for the COMP price is the horizontal zone between $51.80
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