COMP Faces Resistance at $42 as Bears Take Control
After a fall to $40 in mid-August, the COMP token has struggled toย maintain any rally attempts. It has lost 29% in the theย previousย 30ย days, with a 3% decline in the lastย week. Despiteย theย factย that COMP saw a surge of 13% on September 13, hittingย aย peak of $41.89, the bears quickly took control and pushed the token back below $42.
As of September 14, COMP is currentlyย worth $38.80, down by 6%, with a 35% decrease in volumeย ofย trading. The $42 price level continuesย to act as strong resistance for COMP.
Analysis: Critical Moving Averages Suggest Uncertain Future for COMP
The chart indicates that COMP is asย ofย now trading below the critical moving averages, signaling a bearish market trend. The Relative Strength Index (RSI) stands at 39, indicating sell pressure on COMP. Nonetheless, the Moving Average Intersection Divergence (MACD) shows buyers returning and could potentially lead to a positiveย trend turnย for COMP if momentum increases.
Bargain Investors May Trigger an Uptick for COMP
Regardlessย of facing resistance at $42, COMP is trading over the levelย ofย support at $36.79. If it falls below this level, itย might attract more buyers looking for lower prices, whichย might push the price over $42 in the coming days.
Compound Reacts to Unitedย States Inflation Data
Theย mostย recent Unitedย States inflation data has had a modest impact on digitalย currency prices. Growing gasoline prices have been a primary driver of inflation, causing concern between investors and leading to retracement in altcoins like Compound (COMP). Inย addition, COMPโs interest rates are asย ofย now not competitive compared to other investment alternatives, potentially leading investors to seek alternatives.
Consider Bitcoinย (BTC) BSC for Attractive APY Returns
For investors looking to diversify their cryptocurrency investments, Bitcoinย (BTC) BSC ($BTCBSC) is a promising stake-to-earn project. With over 860,000 BTCBSC tokens staked and an estimated yield of 307%, the project has garnered wholeย lotย of attention within a short period.
The BTCBSC token is asย ofย now in its presale stages, with over $1.7 Million raised towards the $3.96 Million target. Interested investors can take part in the presale using BNB, USDT, or ETH.
Hot Take: Compound Faces Resistance as Investors Seek Alternatives
Compound (COMP) has struggled toย maintain a rally and faces resistance at $42. Regardlessย of recent price movements, the critical moving averages and RSI suggest uncertainty in COMPโs future. Growing inflation and non-competitive interest rates have led some investors to seek alternatives to Compound. Inย theย meantime, Bitcoinย (BTC) BSC offers attractive APY returns and has gained wholeย lotย of attention during its presale stages. As investors look for newย doors, COMP may continue to face challenges unless it can provide competitive returns for its users.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
