This week has witnessed an astounding rally in the COMP price, defying the prevailing bear market sentiment. Over the past seven days, COMP has surged by more than 22%, solidifying its status as a top-performing cryptocurrency. Nevertheless, despite this remarkable gain, an analyst believes the rally still has significant room to grow.
COMP Price Chart Shows Promise
In a particularly bullish analysis, a pseudonymous analyst known as MyCryptoParadise on TradingView has proposed that COMP could rise by another 50% from its current levels. The foundation for this optimistic outlook lies in a double-bottom pattern that emerged between August and September.
MyCryptoParadise points to a previous instance when a similar double-bottom formation occurred in June, leading to a 269% surge in COMP’s price. Extrapolating this historical pattern to the current situation suggests a potential price increase ranging from 65% to 80%.
“In the event of such a breakout, we anticipate a remarkable price increase ranging from 65% to 80%. Notably, this aligns with the positions of two pivotal double Fibonacci resistance levels at $60.65 and $66.00,” the analyst explains.
If the crypto asset mirrors the June trend and experiences a surge exceeding 200%, it could potentially breach the $80 mark.
Challenges Along the Way
However, it could be smoother sailing for COMP. The analyst highlights a significant obstacle in the form of a descending trend line that currently looms on the chart. Overcoming this trend line is crucial for the double bottom pattern to materialize fully.
On the path to higher prices, the analyst anticipates a retracement from $53 back to the $48 level before the upward momentum can resume. Beyond this, two double Fibonacci resistance levels emerge at $60 and $66, representing the most formidable obstacles for the ongoing rally.
Current Performance
COMP currently stands as the third-highest gainer over the last day, surging by more than 10% and crossing the $47 threshold. Over the past week, its impressive performance has propelled its market capitalization to $375 million, a significant achievement for this altcoin.
In conclusion, COMP’s recent price action suggests the potential for further gains, with the analysis pointing to a promising double-bottom formation. However, investors must remain vigilant, as the crypto asset faces challenges in the form of a descending trend line and robust resistance levels. Nonetheless, COMP’s resilience amid the bear market has certainly caught the attention of traders and investors alike, making it a coin to watch closely in the coming days.
