- COMP token price is back below the crucial EMA’S 20,50, and 200 in the daily time frame
- The COMP/BTC pair was trading at 0.01096 BTC with a loss of 3.55%
- The current price of the COMP token is $325, with an intraday loss of 4.51%
The COMP token is facing strong bear attacks after getting rejected from the $530 resistance. Continuing with its fall, the price has broken down another $340 crucial support level, triggering an excellent short opportunity for COMP traders, as the price could plunge to the $271 mark. However, the price has to show sustainability below this support level to confirm a genuine breakdown.
About the EMA’s, the COMP token is trading above all the critical EMA’s 20, 50, and 200, indicating a strong bullish trend formation. However, due to the absolute V rejection of price from the $530 resistance, the EMA levels have quite crumbled together, creating some confusion for the market participants.
The RSI (BULLISH) value is at 42 and shows a steady downtrend with a descending trendline.
COMP Token Shows A Falling Parallel Channel Pattern
The COMP token price resonating in a falling parallel channel pattern carries a steady downtrend in the 4hr time frame. This pattern could bring a box of new opportunities for COMP traders. Therefore, until the pattern is intact, the traders can take excellent short reversal traders whenever the price rejects from the overhead resistance trendline.
The MACD indicator (BEARISH) shows both the MACD and the signal line moving below the neutral zone(0.00), indicating strong bearish momentum in the token. In addition, the lines also project a sell signal for traders by giving a bearish crossover.
Conclusion: From the technical perspective, the overall sentiment of the COMP token is still bearish, as both the price action and shown indicators show a strong bearish outlook. Therefore, trend traders can look for good shorting opportunities like the falling parallel channel to book some good profits in COMP token.
Support– $271
Resistance– $340