Compound Price Analysis: COMP Breaks Week-long Winning Streak To $330
- Compound price recovery topped out at $330 as overhead pressure returned.
- On-chain activity is on an uptick, according to a report by Santiment.
- A falling wedge pattern hints at the uptrend regaining momentum.
Compound price settled marginally above $190 amid last week’s widespread declines. A recovery ensued soon after, with COMP securing the position above $200. The comeback continued through the weekend as investors enjoyed the upward roll.
According to the 12-hour chart, the winning streak continued for almost a week, but seller congestion at $330 limited the price action. At the time of writing, Compound is trading at $304 while seeking support at the 50 Simple Moving Average (SMA).
Is Compound price able to resume the uptrend?
A falling wedge pattern on the 12-hour chart brings to light a bullish outlook. The upswing from $250 was accentuated by a breakout above the upper trendline resistance. A surge in volume accompanied it, but the barrier at $330 curtailed the uplift. However, falling wedge patterns have precise targets measured from the widest area and applied to the breakout position. Hence, despite the stalling at $330, Compound has the potential to hit $450.
COMP/USD 12-hour chart
The short-term technical picture is bullish and empathized by the Moving Average Convergence Divergence (MACD) indicator. Note that crossing into the positive region will validate the uptrend’s resumption. The MACD line (blue) has already crossed above the signal line, adding credence to the optimistic outlook.
According to Santiment, Compound on-chain activity is on a solid uptick based on the active addresses. However, the spike was not as substantial as the previous ones, suggesting that the uptrend may correct before going far.
Compound daily active addresses soar
The week also saw Compound’s daily active deposits rise gradually while pointing at local tops. While this is a bullish signal, it is not strong enough to confirm a significant uptrend. Therefore, the activities in the coming few days would determine the uptrend’s validity.
Compound daily deposits start to rise
On the other hand, there was a massive upswing in Compound’s social volume. Although this increase leads to a price uplift in the near term, a correction is anticipated soon after as the sentiment often begins to flip negative.
Compound social volume spikes
Therefore, investors may prefer to sell before the price dips further, thus adding weight to the overhead pressure.