Compound (COMP): Can the 28% Relief Rally Continue?

Compound (COMP) is among the top gainers within the spot and DeFi marketplaces today. The alternative token has gained more than 28.74% within the previous 24 hours.

COMP Makes History

COMP has witnessed its highest one-day surge since 2021 June. That proved lucrative for the aching market players since the network-wide COMP supply flipped to profits, something that hasn’t happened since 2021 December.

Meanwhile, the current rally has progressed since March 14, pushing the altcoin 54% higher. The uptrend saved around 17% of COMP investors from losses that started in 2021 May after the alt hit its ATH at $926.

Though Compound whales remain active, noting volume surges each day, the uptrends within the past 24 hours also triggered increased investor participation. 24-hour transactions hovered above $44 million worth of tokens among COMP investors. Meanwhile, $38 million of the transfers came from whales.

That is essential in maintaining the rally since Compound appears on the edge of overcoming $161. Meanwhile, the territory from $161 to $165 had more than 3.85K investors purchasing 7.38K Compound tokens. Investors within this range might break even whenever COMP hits the levels.

Nevertheless, investors fascinated by the ongoing uptrend and looking to invest should beware that the marketplace is overheated. The Relative Strength Index (RSI) stays in the overbought territory.

The indicator has not touched this area for nearly 11 months, and the current reading indicates a potential trend reversal soon. The token will need a breather before embarking on a sustained rally.

Meanwhile, some indicators suggest RSI has a chance to overextend inside the overbought territory, and COMP might continue soaring for some time before profit-taking showcases. Moreover, the alt’s uptrend received additional momentum as the ADX crossed 25.0 today.

Besides that, the Squeeze Momentum Indicator (SMI) highlights that COMP stays in a squeeze release.

Historically, the squeeze releases start with a surge in the vigor of the ongoing trend and conclude with a reduction in the same before trend reversals emerge. Therefore, verifying the mentioned reversal possibility means COMP can soon witness price retracements.

What are your views about the current crypto market situation? More uptrends after a pause? Feel free to comment in the section below.

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