- The compound’s breakout signals renewed bullish momentum above $46.
- Volume surge confirms strong buying interest and trend reversal.
- Key resistance at $125 could determine the next major price move.
Compound (COMP) rallied 17.24% to $46.44, bouncing from a low of $39.26. It reached a peak of $79.99 before closing, indicating volatility and strong market activity. The primary resistance remains in the vicinity of $125, with support at approximately $39, setting key technical levels.
Price Movement, Trend Reversal, and Moving Averages
Breakout price follows a long consolidation period, marked by a strong bullish candle. RSI of 54.65 shows increasing momentum, crossing over from the previous 42.59 level. MACD shows a crossover, in which the line at 0.44 crosses over the signal line at -1.63. Fibonacci retracement levels show COMP has regained key short-term support, which is a sign of further upside.
Source: TradingView
A downside-sloping trendline had previously restricted upside momentum, activating a long bearish trend. The breakout above this resistance aligns with increased volume, confirming renewed buying interest. Moving averages (SMA and EMA) display bullish alignment, supporting the breakout structure. A sustained move above the 50-day EMA could reinforce upward momentum.
Volume Expansion, Market Participation, and Technical Barriers
Trading volume spiked to 1.15 million, significantly exceeding prior sessions. This volume surge validates the breakout and suggests institutional accumulation. Historical data show volume spikes before trend reversals, which also indicates the importance of the recent surge. Consistent volume growth could continue the bull trend and challenge higher levels of resistance.
The $125 level remains a key resistance that must be broken to extend the bull trend. The $39 level is a strong support, deterring further downside risk. The $46-$50 range represents a decisive price zone where further direction will be established.
Market Sentiment, Future Trajectory, and Critical Price Points
According to market analyst Javon Marks, his analysis indicates that COMP’s breakout could lead to a 1,450% upside rally toward $784. He identifies the trendline break as a key shift, signaling strong bullish momentum. His projections align with historical breakout patterns, reinforcing the possibility of an extended rally.
Source: Javon Marks
He observes that volume spikes confirm institutional interest, strengthening the case for sustained price increases. Javon’s findings highlight that a successful hold above the $46-$50 range is crucial for continued momentum. He warns that failure to maintain this level could result in temporary consolidation before another attempt to move higher.
His technical assessment points to the $125 resistance as a major test for further gains. Surpassing this level could validate a long-term breakout, aligning with previous market cycles. His insights emphasize monitoring RSI and MACD for continued strength, confirming signals for an extended bullish trend.
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