The COMP/USD pair could soon fulfil some faint bullish Compound price predictions if the chart picture is anything to go by. The Compound token is on the list of the new joint index released by Galaxy Digital and Bloomberg. The same index, set up to track DeFi tokens, will also feature Aave, Sushi, Uniswap, etc.
This move by Bloomberg confers on Compound a stamp of approval for DeFi from a notable name in the financial industry.
Following the bounce on the 423.78 support level and the ascending trendline by the bullish engulfing candlestick pattern, the active candle has formed a bullish outside day that appears to be on its way to the 528.11 resistance. A touch at this level confirms the pattern to be an evolving ascending triangle.
The price candles would need to break above the resistance at 528.11 to open the pathway towards 588.42. Beyond this level, an additional resistance barrier appears at 641.73, as the price seeks a measured move towards the psychological resistance at 700.0.
On the other hand, a break below the ascending trendline (and by extension the 423.78 support) is needed to alter the sentiment on the token. This would allow for a potential drop towards 379.87. Below this level, 310.88 (20 July low) and 259.14 serve as additional targets to the south.
Follow Eno on Twitter.