- The RSI has shown substantial bearish divergence concerning the token’s price action
- The COMP/BTC pair was trading at 0.009612 BTC with a loss of 6.65%
- The 24hr trading volume in COMP token is $321.6 Million
Since the drastic fall of May and June, COMP token has attempted several attempts to break out of the $530 level; however, each time, it faced strong rejection and was pushed back to lower levels. Anyhow, the price yesterday re-established this crucial level to get another chance to break through it. However, today, the price still shows a red candle at this level, indicating another reversal.
Concerning the EMAs, the COMP token price is trading above the neutral zone(0.00), indicating a bullish trend in this token.
The RSI (BULLISH) value is at 59, indicating the bullish sentiment in this token. However, the RSI shows strong bearish divergence concerning the token’s price action, telling the bulls are losing their momentum.
The COMP Token Chart In The 4hr Time Frame
The COMP token shows the formation of an inverted head and shoulder pattern in the 4hr time frame. This pattern offered a good long opportunity for its traders, with the price breaking out from the $486 neckline. However, the price is currently providing a retest with a long lower price rejection candle.
Moreover, the COMP traders can plot the traditional pivot levels in the chart, as they provide remarkable confluence with the SR levels, providing an extra edge in one’s trading.
The MACD indicator shows both the MACD and the signal line are moving above the neutral zone, indicating bullish sentiment. However, these lines could provide a bearish crossover projecting a buy signal for its traders.
Conclusion: From the technical perspective, the COMP token is in a make or break point as the price rejecting from a crucial resistance and breakout from the inverted head and shoulder pattern contradicting each other. Thus, COMP traders should wait until the price shows it clear motive by rejecting of these signal.
Support– $386, $340
Resistance – $530