Compound (COMP) – recovery curbed by the descending trendlinePosted on Thursday, January 6 2022 at 9:36 pm GMT+0000
Compound (COMP) was forced to shift south after the descending trendline stretched from September 6th and the adjacent 55-day simple moving average managed to curb the last recovery. The coin is in the process of extending its bearish structure of successive lower highs, and lower lows.
From a technical perspective, the persistently falling simple moving averages are shielding the current structure, and oscillators are skewed to the downside promoting further declines. The RSI is located below its 50 neutral mark and pointing down while the IMI is sharply sloping downward near its oversold level.
The base scenario is for the bears to clear the December 15th low of 177. Should their efforts prove successful, the door will open for the Fibonacci golden number of the last up-leg at 129, where any violation will attract further selling interest steering the price straight towards the 227.2% Fibonacci extension at 80.
Alternatively, a decisive break above the descending trendline and the 55-day simple moving average will send the price towards the 281-296 congested zone which encapsulates the 100-day simple moving average. By overcoming that crucial section, bulls will likely advance towards the 360 level marked by the October 26th high.
In brief, Compound is exhibiting a strong bearish picture and a break below the 175 will initially send the price towards the 129 level.