Compound (COMP) suffers steep drop after historic high

On September 1, the COMP hit a new record high.

There is resistance at $ 260, as well as support at $ 205 and $ 170.

The price has just started wave 3 of an impulse five wave bullish formation

The price of Compound (COMP) briefly hit a new all-time high on September 1, before being rejected on the same day and falling sharply.

It is expected to find support near $ 205, before resuming its upward movement.

COMP’s long-term trading range

The COMP price has been rising rapidly since August 25, when it hit a low of $ 161. This rise continued until September 1, when the COMP hit its highest peak to date of $ 272.61.

The next day, price dropped sharply, and is now approaching minor support at $ 205. If that level fails to support it, the next support will likely be at $ 160.

Technical indicators give us a mixed overview. The Stochastic RSI is forming a bullish cross, but this is not yet confirmed. Although the RSI is showing a bearish divergence, the consequent decline has already taken place.

That said, as long as the minor support at $ 205 holds, the COMP is expected to continue moving higher

Since the publication of this tweet, the price posted a new all-time high but then dropped sharply. He is currently looking to hang on to minor support at $ 205.

If the price rebounds and tries again to exceed its record high, the absence of next resistance would take it into uncharted territory. So we need to use the fibonacci levels to figure out what the next high will be.

Price likely started wave 3 with an impulse five wave bullish formation, which could peak at $ 412. This objective is obtained by using the 1.618 fibonacci level of wave 1.

A decline below the bottom of wave 2, at $ 160, would negate this wave count.