- COMP(Compound Coin) helps people to earn interest on those digital assets. It utilizes these assets to increase the revenue of the owner instead of just leaving them in the wallet.
- COMP was founded in August 2017 and it was also incorporated in 2017.
- The analysis will help us to know whether prices will fall or rise in the future.
The Comp coin is up by (60.84%) in the overall time frame. The coin is not performing well at all. The coin from the beginning showed a downtrend.
It made its all-time high in 2021 which was $199.39. The coin formed a strong bearish pattern in the yearly time frame.
The coin in 2021 started its down movement which is similar to a v shape. The coin from 2022 is forming a horizontal line in the yearly time frame.
Technical Analysis of COMP(Yearly)
Source: BITSTAMP: COMPUSD by Trading View
The coin is down by (21.68%) in the one-year time frame. As we can see in the chart it is making a straight line.
It is neither moving up nor moving down. The coin is not suitable for investment.
All cryptocurrencies faced a lot of losses in the 2023 year because of many reasons. The main two reasons were
- Fall in the price of Bitcoin(BTC).
- Bankruptcy of FTX, one of the biggest and most famous cryptocurrency exchanges.
In the United States, 60% of people believe that investing in cryptocurrencies is highly risky.
Technical Analysis of COMP (Monthly)
Source: BITSTAMP: COMPUSD by Trading View
In the monthly time frame, we can see that the coin is continuously in a downtrend. It might continue its down movement.
The coin might make another resistance point on the trend line.
In 2021, the number was 45%, as the coin started to fall the percentage also increased.
In 2022, the digital currency market i.e.Cryptocurrency lost $2 trillion. The number is very big for a particular year.
Technical Analysis of COMP(Weekly)
Source: BITSTAMP: COMPUSD by Trading View
So as we can see, in the weekly time frame the coin is in a declining position. The investment is not fruitful for the investors as the coin is not performing well.
The coin is down by (2.60%) in the last seven days. Coins are highly risky and only knowledgeable people should invest in cryptocurrencies.
Source: BITSTAMP: COMPUSD by Trading View
The pattern confirms that the coin will continue its down movement in the future.
The other 26% believed that the investment in cryptocurrencies are moderately risky. Only 8% of Americans have a positive view for cryptocurrencies.
Technical Analysis of COMP(Daily)
Source: BITSTAMP: Trading View
IN the daily time frame the coin is in a sideways position which can be used for short returns.
This coin is not suitable for any investment whether it is long-term or short-term investment.
Summary
Through the technical analysis, we can conclude that the coin is not performing well.
In the past, it went up to £199 and now it is around £39.44 which is not a good sign. The investors have also lost their money as it drastically felt in 2022.
Many great investors suggested not to invest in cryptocurrencies.
There were many reasons for the fall but now cryptocurrencies are slowly recovering from the downfall.
Levels
Resistance Level- £73.33
Support Level- £26.46
Disclaimer
The analysis is done for providing information through technical analysis and no investment suggestions are given in the article to be made by investors.
The coins are unpredictable so investors should have proper knowledge.
Cryptocurrencies are highly volatile and risky. Investment should be made with proper technical analysis.
