Compound [COMP] witnessed a strong uptrend after surpassing its 4-month high of $54.6. On the 4th of November, COMP recorded a substantial 37.7% increase, surging from $87.34 to $120.28. Although the price briefly spiked to $144, selling pressure caused a minor pullback for the bulls.
Despite the recent significant gains, Compound crypto remains 87% below its all-time peak of $910.5, achieved back in May 2021.
Following the recent resurgence of long-standing tokens like Stellar [XLM], Algorand [ALGO], and Ripple [XRP] – often referred to as “dino tokens” due to their extended presence in the crypto space – DeFi tokens like COMP might see a similar surge in the near future.
Compound Crypto Surpasses March High to Reach New Annual Peak
By analyzing the downtrend from March to August, Fibonacci retracement levels were plotted, with Compound crypto retracing to $33.8, the September 2023 trading range. Subsequently, a consolidation phase at around $40 ensued, with a range between $33.84 and $54.44 and a midpoint at $44.36.
The prolonged consolidation around $40 enabled the bulls to initiate a robust rally in late November. Since the breakout on the 22nd of November, which propelled the token to $64.6, COMP has surged by 77%. The A/D indicator displayed a consistent uptrend during the consolidation period, signifying accumulation, while the MACD indicated strong bullish momentum.
The $119.9 resistance at the 123.6% extension level is currently holding. Short-term support is anticipated at $108 and $90 levels.
Price Forecast for 2025
On the weekly chart, the crucial resistance at $103.48 is on track to be breached, with further resistance levels at $174.8, $200, and $235 to the upside.
The A/D indicator continues its upward trajectory on the weekly timeframe, while the RSI sits at 80, marking a new high in almost four years. A move towards $200 seems probable in the coming weeks.
However, sustained buying pressure is essential for Compound crypto to surpass $235. The possibility of reaching higher levels like $500 hinges on the influx of sufficient buyers beyond the current resistance.
Disclaimer: The views expressed do not constitute financial, investment, or trading advice and are solely the author’s perspective.