Crypto analyst Ali Martinez has shared a COMP chart that shows that the popular DeFi token is breaking out and has good odds of soaring higher if it can find enough support from buyers.
"Compound appears to be breaking out"
Martinez tweeted that COMP, at the moment, is going through the descending triangle pattern of a symmetrical triangle that formed on the four-hour COMP/TetherUS Perpetual Futures chart on Binance.
The trader believes that if the wave of buying pressure surges, it can push the token's price up by about 24%, in the direction of the $67 level. The main condition here is that COMP has to hold the $50 support.
“A spike in buying pressure could COMP up 24% towards $67 as long as the $50 support holds.”
#Compound appears to be breaking out!$COMP is currently slicing thought the descending trendline of a symmetrical triangle that developed on its 4hr chart. A spike in buying pressure could #COMP up 24% towards $67 as long as the $50 support holds. pic.twitter.com/LQ67jqalEE— Ali (@ali_charts) February 7, 2023
Over the past 24 hours, the aforementioned token has jumped by roughly 9% overall, now exchanging hands at the $55.58 level. It is currently trading about 94% below its all-time high of $911 reached on May 12, 2021, after Bitcoin hit a historic peak, too.
COMP is a governance token utilized on decentralized ledger Compound. It is ranked 103rd on the CoinMarketCap scale of tokens with a market capitalization of $403,469,637 (it has grown by 5.86% in the past 24 hours). The token's trading volume has also jumped up, by 21.93%, reaching $42,212,246.
Crypto discussion rate surges
According to a tweet recently published by Santiment data aggregator, crypto is enjoying a rise in discussion on various social media platforms. Per the tweet, the total number of mentions stays at a high level after reaching a peak in the middle of December last year.
It remains high even though flagship cryptocurrency Bitcoin is 66% under its historic peak of $69,000 reached in November 2021. Therefore, the Santiment team states, interest in crypto is definitely rising in the community.
😮 The overall amount of #crypto discussions occurring on social platforms remains high after peaking the week of Dec. 14, 2022. Despite #Bitcoin still being -66% from its Nov. 2021 #AllTimeHigh, the increasing interest in #cryptocurrency is quite evident. https://t.co/hBGjY9A5CJ pic.twitter.com/Td4nlKLLVH— Santiment (@santimentfeed) February 6, 2023