Compound’s COMP token surged 23% recently but faces potential reversal after hitting a descending channel’s upper boundary. The altcoin traded at $20.51 after reaching a high of $22.84, while its 24-hour trading volume exploded by 502% to $308 million. Despite the price rally, technical analysis and derivatives data present mixed signals for the asset’s near-term trajectory.
Compound’s COMP recorded gains of 23% before flashing a bearish sign hinting at a price reversal. The altcoin was trading at $20.51 after hitting an intraday high of $22.84, with its trading volume surging 502% to $307.95 million.
Technical analysis revealed COMP has been moving within a descending channel pattern since August 2025. Historically, the price has consistently reversed after hitting the channel’s upper boundary, suggesting a potential downside move of over 30%.
The bearish thesis would be invalidated only if COMP breaks out and closes a daily candle above $24.85. The Average Directional Index climbed to 48.83, indicating a strong directional move, while the Money Flow Index hit 72.27, signaling overbought conditions.
Data from Coinglass showed more than $144,880 worth of COMP flowed out of exchanges in 24 hours, hinting at accumulation. Meanwhile, Nansen highlighted a 4.12% decline in exchange reserves during the same period.
The COMP exchange liquidation map showed traders positioned around $19.6 for support and $22.1 for resistance. Traders built $343,130 worth of long-leveraged positions and $2.06 million worth of short-leveraged positions at these levels.
