Patience Pays - It's Time To Buy Compound!

Patience Pays - It's Time To Buy Compound!

By Sapphire | Sapphire Crypto | 23 Jul 2020


Determine Your Entry And Wait

On the 1st of July I published an article entitled "Top DeFi Projects Dumping -  Buy Zone Incoming!", where I mentioned where I would be looking to pick up DeFi projects. It was pretty clear that COMP was overpriced at $200 and above. Fomo had people thinking that even $300 was a good entry point, reasoning that COMP had peaked at almost $400! However, I was not buying and stated in the above mentioned article that I was ideally looking for an entry at $175.

Recently, COMP dipped all the way to the $152 level and is currently trading at $160. I did not open a position at $175 as I saw a significant amount of weakness in the price and decided to wait for more of a clear bottom to form. Eight days passed in which the price did not drop below $152, so I opened a new position at $155. I don't see much further downside from here but you never know.

Markets are a bit bullish on the big banking news, ETH is pumping and even BTC is up. After such a significant correction it would be hard to imagine COMP dropping below $150, especially in the above mentioned conditions.

COMP In The Charts

Looking at the daily chart, one can see Compound has been on a downtrend for an entire month, with a bit of an upward spike at the beginning of July. There are also signs of a double bottom forming, which is pretty bullish.

b072cf6da4c5e501283583c1b2ead821968d1ce3fac46f3f793591c2338ae199.png

A break and hold above the $170 level would most likely confirm the pattern and bring significant confidence for traders to start opening long positions. As always, I have only used a portion of the funds I have allocated to this trade, in the event there is a flash crash or unseen event take place. 

Ampleforth should also be on traders radars as it dumped 30% today with no rebound or significant wicks up. Please remember that this is not financial advice but rather how I view the market. These are my personal views and should be treated as such.

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Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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