This week has seen the COMP price put on one of the most impressive rallies amid the bear market. The price recovery has seen the digital asset gain more than 22% over a 7-day period, cementing its position as a top gainer. But even with such an already significant gain, one analyst believes that the rally is far from over.
COMP Price Chart Shows Promise
In the analysis that presents one of the most bullish scenarios so far for the COMP price, a pseudonymous analyst who goes by MyCryptoParadise on TradingView has put forward that the altcoin could still rise another 50% from here.
The chart shared by the analyst points to a double bottom that was marked between August and September. At the end of this double bottom lies incredible promise for the COMP price, making a rise to $66 possible after already crossing $40.
MyCryptoParadise explains the chart using the double bottom that had formed for the digital asset back in June. At this time, the altcoin had undergone what they called “a monumental breakout” that ended in a 269% surge. Applying this historical movement to the current double bottom formation produces a potential 65-80% increase according to the analyst.
“In the event of such a breakout, we anticipate a remarkable price increase ranging from 65% to 80%. Notably, this aligns with the positions of two pivotal double Fibonacci resistance levels at $60.65 and $66.00,” the analyst explains.
COMP prediction to $66 | Source: Tradingview.com
If the digital asset does follow the June trend to a T and mount an over 200% surge, it would mean the COMP price could cross $80.
Still Some Hurdles To Scale
Although the forecast for the COMP price remains very bullish, the analyst points out that this formation is not without its hurdles. For the double bottom to fully form and complete the trend, it must overcome a descending trend line that has reared its ugly head in the chart. However, if COMP is successful in beating this descending trend line, then the formation will be completely played out.
On the way up, the crypto analyst points out a retracement from $53 back down to the $48 level before the momentum continues. Following this, there is a double Fibonacci resistance at $60, and then another presented at $66, both of which display the most resistance for the rally.
COMP is currently the third-highest gainer in the last day after rising over 10% to cross $47. Its price is up approximately 22% on the weekly chart, bringing its market cap to $375 million.