Compound’s token could rally by 25% as it was caught up in the intense consolidation phase over the week with the asset oscillating between $190 and $220 as we are reading more in the upcoming altcoin news today.
The cryptocurrency had a hard time to get to a clear momentum with the intense upswing seen earlier this month, showing signs of faltering. Despite this, however, analysts remain confident that Compound’s token COMP is prepared to see further upside as it could break above the $217 and spark an intense rally to the new highs. The potential rally comes as the coin’s technical outlook shows increasing strength with the bulls conducting a clear support resistance flip which led one analyst to anticipate the near-term upside.
The merge of the recent momentum with the strong technical outlook signals that COMP could be a few days away from reclaiming the recent highs. At the time of writing, Compound is trading under 3% at $200 which is the same price level that it was trading over the past week. Earlier this month, the bulls were able to bring the price to a high of $262 which is where the momentum stalled and entered a sharp downtrend which pushed the price to $190.
From here, the cryptocurrency was consolidating between the lows and highs of $220 but it was not able to break above or below the levels. One analyst explained that multiple factors are counting in as a favor. He pointed out to the volume’s downtrend breaking as well as the support-resistance flip as the factors suggest an upside movement that is imminent:
“I like how COMP looks. Break of the downtrend on high volume (similar action to ’19 BTC breakout from 3k), clean S/R flip. Imo easy 25%, but I hope to turn this into a swing trade.”
Another analyst supports this bullish sentiment saying that he believes Compound is well-positioned to see a huge push higher in the near-term. He noted that this breakout could come to fruition as the price of the token has to range higher at $217 level as a support, as he said pointing to the charts:
“COMP looks pretty good for a run at the highs if it can flip 217.”
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