With the market liquidations on the rise, Compound enters the list of top-performing altcoins with two bullish daily candles. As the bull run in the COMP price gains momentum, the daily chart reveals a breakout run impending to explode.
So, let’s take a closer look at the price action analysis to predict the targets ahead in 2024. For a longer-term analysis, check out our COMP price prediction for 2024 and the coming years.
Compound’s Breakout Run Crosses 50D EMA
With a long-coming correction phase in the daily chart, the COMP price hit rock bottom at $44 after breaking the $50 psychological cushion. The downtrend formed a declining trendline in the daily chart.
However, the bullish powers resurfacing in the COMP price trend breaks the trendline. Further, the recent price jump of 11% breaks past the declining 50D EMA and reclaims the $50 mark.
Currently, the COMP price trades at $52.65, with an intraday Doji candle reflecting a potential bullish exhaustion. Further, the overhead supply could result in another bullish failure.
Technical Indicators:
RSI Indicator: The daily RSI line is moving in a sideways path around the halfway line with the recent uptick reflecting the jump. The RSI line above 50% with a lack of divergences bolsters the uptrend continuation.
EMA: The 50D and 200D EMAs decline after the death cross event. Following the 50D EMA breakout, the 200D EMA acts as the dynamic resistance next in line for the COMP uptrend.
Will The COMP Price Jump This Week?
With two bullish engulfing candles, the short-term optimism in Compound peaks, but the broader trend paints a neutral to bearish picture. Despite the trendline breakout, the lack of bullish momentum questions the upside potential. Further, the intraday Doji candle adds to the bullish uncertainty.
An uptrend continuation above the 200D EMA and the 23.60% Fibonacci level at $56.52 will be a milestone event. Signalling a trend reversal, the $56 breakout run can pump the COMP price to the $75 mark.
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