The Compound (COMP) price has been in a heavy consolidation phase over the past week and has fluctuated between $ 190 and $ 220.
The cryptocurrency is struggling to gain clear momentum as its intense rise earlier this month started showing some signs of glitch. However, analysts are confident that COMP is well positioned to see further gains, and point out that a break above $ 217 could be enough to trigger an intense rise towards the highs.
This potential rally comes as the technical landscape of the cryptocurrency is starting to grow increasingly bright, and the bulls have recently made a “clean” support resistance return that has led an analyst to expect bullishness in the near term. The combination of its recent momentum with its strong technical outlook suggests it may be just days away from regaining its highs, analysts say.
At the time of writing, Compound was trading at $ 195.36, according to CoinMarketCap data. This is slightly below the price the cryptocurrency traded last week. Earlier this month, COMP bulls managed to push the price to the highs of $ 262. This is where its momentum stalls and enters a sharp downtrend that drove it slightly below $ 190.
The cryptocurrency consolidates across the range of around $ 220 at this level and cannot go above or below both of these levels. An analyst explained in a recent tweet that many factors are now counting in his favor.
I like how $COMP looks. Break of the downtrend on high volume (similar action to '19 BTC breakout from 3k), clean S/R flip.
— #DYORangutang (@cryptorangutang) August 16, 2020
Being in a Good Position
Another analyst echoed this upward thinking and explained that he believes the Compound is well positioned to see a significant rise in the near term. He says that for this boom rally to pay off, the token price must rise above around $ 217 as a support:
“If COMP passes 217, it looks pretty good for a rally.”
As the DeFi industry remains in a strong uptrend, there is a firm belief that this will be enough to push COMP even higher.