- Compound was one of the most successful DeFi projects reaching a market capitalization of $804 million.
- COMP quickly retraced and lost around 50% of its initial value one month after its listing.
COMP/USD daily chart
COMP bulls have been holding a crucial support area around $159 for quite some time. The price has poked through the support level a few times, but bulls have always managed to push it back up.
COMP IOMAP chartCOMP IOMAP chartCOMP IOMAP chart
Looking at the IOMAP chart, we can see the biggest support area is around $159; however, resistance and selling pressure is clearly far stronger and indicates COMP is at risk of quickly dropping below $159.
On the other hand, the pullback from $272 was accompanied by a slow decrease in trading volume, indicating a lack of strength by the bears. The 10-SMA and the 50-SMA are both acting as resistance levels. A bounce from $159 could push the digital asset towards $170.
COMP/USD 4-hour chart
Unfortunately, it seems that bears have the upper hand as COMP is currently trading right below $159 and is struggling to recover. The RSI is not yet overextended, and the next support point is down at $153.72, but this is not a healthy support level. A clear break and close below $159 would be catastrophic considering the intense selling pressure and will push COMP to the low of $145 and possibly below.