Yesterday, Compound (COMP) increased by over 45% throughout the day. It came very close to reaching a new all-time high but has since pulled back a bit.
The COMP price has been increasing since Aug 2, when it reached a low of $110. From that low to its current price, COMP has increased by more than 96%.
COMP Nearly Cracks All-Time High
Yesterday’s candlestick was the biggest to date, measuring in at almost 46% from the bottom of the wick to the top. In addition, it had the highest volume to date.
However, the price is today is still trading under the significant resistance area at $265, which is created by the all-time high price on June 26. The price made an attempt at moving above this level yesterday but was rejected all the way back down to today’s opening price of $218.
While the RSI is inside the overbought territory, indicating that the move is extended, it has yet to generate any type of bearish divergence on the daily chart.
COMP/USDT Chart by TradingView Wave Count
Cryptocurrency trader TheEWguy stated that the COMP price is likely to continue its upward movement towards a new all-time high and eventually reach $300.
Source: Twitter The price movement since August 2 suggests that the price has indeed begun an impulsive upward movement. This is evident by the breakout from the parallel channel on Aug 10, and the steepness of the slope that caused the breakout.
The RSI on the hourly chart is showing signs of significant bearish divergence and has fallen back to the 50-line. Volume has also been decreasing during the most recent higher-high.
In addition, the MACD shows decreasing momentum, shown by the lower bar.
It seems that yesterday’s price movement was the third wave, which came to an end this morning. The fourth wave bottom appears to already have been hit earlier around $218. This could mean that the fifth and final wave has begun, which may be where COMP locks in a new all-time high.
On the other hand, a decrease below the wave 1 high at $189 would likely invalidate this particular wave count.
COMP/USDT Chart by TradingView To conclude, the COMP price seems to have begun a five-wave impulsive formation, which is expected to create a new all-time high price after a slight retracement.
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