COMP, NEAR & KAVA are showing signs of recovery from the recent sell-off
Compound (COMP) is trading within a descending parallel channel and bounced off its support line yesterday.
Kava.io (KAVA) rebounded from the USD 4.80 support area after falling sharply.
Near Protocol (NEAR) broke the parabolic ascending support line.
The COMP has risen since June 22nd. The move was quick to begin with, peaking at $ 531 on July 6th.
Since then, however, the token has been steadily declining. It hit a low of $ 301 on September 21. The rally subsequently confirmed the $ 305 area of support.
However, despite the recovery, technical indicators continue to decline. MACD and RSI are both declining, the former is below 0, the latter is below 50.
COMP / USDT daily chart | Source: TradingView
While the daily chart does not show bullish signs, the six-hour chart does. The token appears to be trading in a descending parallel channel, a structure that often contains corrective movements.
In addition, the aforementioned September 21 low was created right on the channel’s support line. In addition, it creates an A: C wave with a ratio of 1: 1.
If the COMP manages to get back to the centerline of the channel, it could mean that the current decline is a correction and eventually a breakout will occur.
COMP / USDT 6-hour chart | Source: TradingView
- COMP trades on a descending parallel channel.
- There is support at $ 315.
On July 24th, KAVA broke out and hit a new all-time high of $ 9.21 on August 30th.
It only reached $ 4.55 so far, on September 22nd. The rebound that followed helped confirm the $ 4.80 area as support. This is both horizontal support and 0.618 fib retracement support.
KAVA is currently in the process of creating growth that should decline.
However, the technical indicators continue to decline. MACD and RSI are both falling. The MACD has entered the negative zone while the RSI is below 50.
Daily KAVA / USDT Chart | Source: TradingView
One look at the shorter-term six-hour chart shows that the decline is a bearish five-wave impulse. This is in line with the opinion that the short / medium term trend is declining.
However, since the momentum is complete, it is likely that the price will jump significantly.
The initial resistance is at $ 6.90, which is the 0.5 fib retracement level and the horizontal resistance area.
KAVA / USDT 6-hour chart | Source: TradingView
- KAVA has broken out above the descending resistance line.
- There is support at $ 4.80.
NEAR has risen along with a parabolic ascending support line since July 20th. This resulted in a new all-time high of $ 11.88 on September 9th.
However, since then the token has gone down.
It broke parabolic support on September 20th and hit a low of $ 6.33 the next day. The subsequent jump confirmed the USD 6.70 area as support. This is both horizontal support and 0.5 fib retracement support.
Although NEAR has rallied, the technical indicators offer a mixed outlook. Both the MACD and RSI are falling, but the former is in positive territory and the latter is right on the 50 line.
NEAR / USDT daily chart | Source: TradingView
However, the short-term two-hour chart is more bullish.
Similar to COMP, NEAR trades in a descending parallel channel. On September 21, it ricocheted off the channel’s support line. In addition, both the RSI and the MACD create bullish divergences.
If the token manages to regain the center line of the channel, it increases the likelihood of a breakout.
NEAR / USDT 2-hour chart | Source: TradingView
You can see the coin prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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