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Preparing to buy Compound if breakout becomes a success at key resistance

ByNdasi Tata

Jul 16, 2022
1633344214160 0fed50d3 5007 4868 9e31 7a3ce142b0ff
1633344214160 0fed50d3 5007 4868 9e31 7a3ce142b0ff

  • The compound token has returned 19% in 24 hours and 21% in one week

  • COMP attracted buyer interest at the $28 bottom price

  • The cryptocurrency has hit resistance with a potential to break above

Compound token COMP/USD has gained 19% in 24 hours. Well, this may not be unique news since most cryptocurrencies started Monday in the green. However, only a handful have returned by double digits. The compound token is one of them.

Compound has been one of the most highly watched cryptocurrencies in the last week. With gains of 21% in a week, COMP has defied a bearish crypto market, and investors are taking notes. Comparatively, the leading cryptocurrency, Bitcoin, has lost 3.86% in the last seven days. Ethereum has less than 0.5% gains.

COMP’s gains in the last one week confirm a lot of buyer interest at the $28 bottom. The cryptocurrency has risen to meet resistance at $55. At press time, the cryptocurrency trades at $56, temporarily breaking past the resistance level. We believe investors should prepare to buy COMP if the current momentum proves long-lasting.

COMP hits resistance but is yet to successfully close past it

1657917129735 ee535102 e2f8 40be 9508 fa917320063dSource – TradingView

On the daily chart, COMP has retreated slightly after breaking past the $55 resistance. MACD indicators are bullish, while the moving averages offer support. We will watch the close of the daily candle for a confirmation of a break-out. A breakout and a confirmation candle on the daily chart will make $55 a buy zone for COMP. For now, we will wait to see how price action plays out at the resistance. A failed breakout could see the token retreat back to $45.

Summary

The compound token is gearing for a breakout at the $55 resistance. We should buy if a breakout occurs with a confirmation of the bullish momentum.

The post Preparing to buy Compound if breakout becomes a success at key resistance appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist who's also known for being a Bitcoin and Blockchain advocate. He's a crypto lover and reporter and has promoted several crypto projects within the African Continent. He uses a variety of social media and online channels. In addition to running a successful Facebook page with thousands of fans, he also promotes blockchain and bitcoin development initiatives on the well-liked YouTube channel #cryptoafrica-now. He earned an M.Sc. from the University of Nicosia in Cyprus in Blockchain and Digital Currency. At the University of Nicosia, Andreas Antonopoulos, Ph.D., and Antonis Polemitis, Ph.D., serve as role models.

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