What is COMP up to? #trading

12 Jul 2023 · 1 min

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In this commentary, The Art of Crypto examines Compound (COMP) token's price action over the past year, noting that it has been confined to a roughly 100% trading range bounded by a clear low and high. Historical patterns suggest a strong likelihood of price reversal when these bounds are reached. The analyst highlights a recent breach of the range high and proposes a short position, contingent on two specific criteria: a confirmed daily candle body closing below the key level of $51.64 and the fulfillment of an additional unnamed condition. If both are met, the plan is to wait for a modest retracement before initiating the short, targeting an initial profit-taking point around $35, with additional targets at $47.8 and $35.2. The overall outlook frames the move as potentially a “scam pump,” emphasizing caution and a data‑driven approach to trade execution.

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Compound for the past year, essentially it's just been trading within a 100% range. There are only two levels that you should really look at: that's a range low and that's a range high. Now history would indicate to us that the chances once you hit a range high or once you hit a range low, the chances of you reversing to the other level is pretty high. As you can see what happened over the last year. So given that new range highs has been taken, I would actually be looking for a short here, especially because this was a fairly aggressive move. Depending on how the next few daily candles close, this could really just be a scam pump. The factor that I would be looking at first. Firstly, it would be simply marking out this level here at 51.64, like a confirmed daily candle body close beneath this level. In fact, you know, if you do get those 2 criteria fulfilled, then I would just wait for a little bit of a retrace back higher in order to short this back down to range lows. And in this case, my target would be a good first TP would be like at $35. Couple of good TP points would be at 47.8 as well as 35.2. That is the scenario that I'm looking at.