Among other competitors, Compound (COMP) was the altcoin project that took a step forward this week. A 30% target of $80 comes from analyst Philip L. The time until the end of this week will be important for COMP. Here are the reasons…
Analysts say COMP price will reach $80 by the end of the week
Compound (COMP) price is firmly tied to the week with the positive mood spreading from Friday to Monday. The Asian market has seen the bulls jump out of the gates and buy any available price action with renewed hope to put a quick end to the inflation drift. As commodities fall once again, inflation pressures may begin to ease. Thus, risky assets such as cryptocurrencies also have an opportunity to recover. In this case, the COMP price suggests a 55% gain, according to analysts. Here’s how…
COMP price needs to break a hurdle, altcoin market is good for it
COMP looks just perfect for the 55% rally as a technical setup has surfaced this morning. After seeing price action at $50.63, it came back to retest it over the weekend. It then found support and now looks set to rise above last week’s high. With a perfect long strategy, analysts are poised for a rally to $60 to coincide with the 55-day Simple Moving Average (SMA).
COMP price is at a crucial level to break through if price action seeks to rally further. Therefore, traders will probably want to take some profit around this 55-day SMA. If stocks continue to rally throughout the week, a spillover effect is expected with trailing headwinds assisting COMP price action and pushing above this technical hurdle. From here, COMP price comes into play with a monthly pivot and a critical historical level, opening a zone with no real resistance before reaching roughly $79.
Last week’s rally was very fast and tense. Now the RSI is overheating pretty quickly. Therefore, it is ready to touch the overbought level before the $80 limit is reached. This will cause the rally to lose momentum and possibly take bigger profits as the COMP price action drops back to $50.63 to seek support. If this level doesn’t hold, analysts expect to see a full return to $30 as the entire rally unravels.
Compound is a DeFi loan protocol that allows users to earn interest by depositing cryptocurrencies into one of the various pools supported by the platform. cryptocoin.comWe have prepared a detailed guide for Compound.
