Compound (COMP) bulls must overcome seller congestion near $140 to sustain the upward trajectory
Compound needs to clear a significant resistance zone for bulls to continue the upward move, which could push price back above $160.
However, in recent hours sellers have refused to yield ground, keeping price below $140. If bears take short-term control, Compound could fall toward the 50-period simple moving average (daily chart).
Technical outlook for COMP/USD
While bulls could find enough support to push about 14% higher toward $160, the technical picture indicates selling pressure in the coming days could drive a retracement to lows near $109 or lower. If that occurs, COMP/USD would likely correct roughly 21% from current price levels.
The daily chart shows bulls struggling to break the same resistance zone that capped the rally in November. The subsequent decline saw COMP drop to sub-$100 levels. Current technicals point to a similar correction if bulls cannot clear this obstacle.
Daily chart of COMP/USD. Source: TradingView
The 100-SMA around $127 provides initial support if bulls lose momentum, with an additional cushion near the 50-SMA at approximately $107.
A higher daily and weekly close above the primary resistance level should allow bulls to reassert control toward $150. Extended gains driven by a broader positive shift in DeFi sentiment could then target $160 and the 90-day high near $197.
COMP/USD 4-hour chart. Source: TradingView
That said, the 4-hour chart above shows bears likely to remain active around the highlighted short-term resistance. A bearish signal is coming from the RSI, which sits in overbought territory. A reversal of this momentum metric could push prices lower, a scenario reinforced by the TD Sequential indicator, which recently printed a sell signal.
The last time TD Sequential printed nine consecutive green candles on the 4-hour timeframe, validation led to a correction down to $103.
COMP/USD price chart on 4 hours. Source: TradingView
If the recent sell signal is confirmed and bulls fail to clear the highlighted obstacle, COMP/USD could correct to $120. Below that level, further losses could push the price toward key support zones around the 50-SMA (~$111) and the 200-SMA (~$109).
At the time of writing, COMP/USD trades around $136, roughly 10% higher over the past 24 hours. The token is outperforming other top DeFi tokens, with Aave (AAVE) posting the second-best 24-hour gain at about +6.5%.