COMP Technical Analysis: Sellers Ready To Crack The EMA Trap

COMP coin price action displays a sideways trend trapped between the EMAs as the sellers plan a breakout rally to reach the $115 mark. Key technical points: The COMP coin price hangs at the 50-day EMA. In addition, MACD and signal lines give a bearish crossover. Finally, the intraday trading volume of Compound is $96.88 Million, with a 12% fall. Past Performance of COMP COMP coin price action shows a sideways trend between the 50 and 100-day EMAs and a double top breakout. However, the support at the 50-day EMA fuels a bullish retracement to retest the breakout. The breakout accounts for a decline of 7% in the past day and forms a bearish engulfing candlestick. Source-Tradingview COMP Technical Analysis COMP coin price shows a high possibility of a downtrend continuation after the double top breakout. However, the entry opportunity awaits a closing below the $132 mark to avoid a fakeout. The crucial daily EMAs (50, 100, and 200) struggle to maintain a bearish alignment as the 50 and 100-day EMAs sustain a consolidation range. However, closing below the 50-day EMA will ensure a fallout trend reaching $115. RSI indicator: The sideways trend leads to diagonal decline to reach the zero line as the downtrend gains momentum. Hence, a fall in RSI to the oversold zone is highly likely. MACD Indicator: The MACD and the signal lines are diverging after a bearish crossover reflecting a gradual rise in selling pressure. In a nutshell, the...