COMP Price Ready For Triangle Breakout, Awaits $60 Crossover
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Despite the recent volatility spikes in the overall market, Compound price action shows a triangle pattern formation in the daily chart. The symmetrical pattern reflects a lack of volatility and compression in the COMP price trend.
The ongoing resonance within the symmetrical pattern resonates with the market cycle but limits the range between two boundary trendlines. Hence, the breakout on either side will be the trendsetter. As per the COMP price prediction for 2024 and the coming years, the bulls have better performance chances.
Source- Tradingview
The compressing COMP price trend forms a symmetrical triangle pattern for more than 6 months. Further, the low volatile phase bottles up the sideways pattern and teases a breakout shortly.
The recent bullish reversal from the support trendline challenges the overhead resistance trendline and hints at a bullish break. Moreover, the uptrend forms a morning star pattern at the 38.20% Fibonacci level, increasing the bull run chances.
Currently, the COMP price trades at $58.55 with an intraday growth of 2.07%, forming a bullish candle. Additionally, the growing trend momentum in the ongoing upcycle increases the breakout chances.
Technical Indicators:
RSI Indicator: The daily RSI trajectory for COMP is on an upward path, breaking past the midpoint and approaching the 80% mark. This movement indicates a robust bullish momentum building up in the market.
EMA: The 50D and 200D EMAs provide dynamic support to the growing trend. Further, they maintain a positive trend following the golden crossover.
Will The COMP Price Reach $100?
COMP price is currently receiving support from the base trendline and has surpassed the 38.20% Fibonacci level, hinting at a likely breakout rally. This situation may serve as an ideal entry point for investors waiting on the sidelines.
Should a breakout rally occur, there’s a substantial potential for the uptrend to challenge the previous high of $77. Further, it could even extend toward the $100 threshold. On the other hand, a reversal from the current resistance trendline might lead to a dip toward $50.
Filed under: Bitcoin - @ January 16, 2024 9:06 am