COMP, GRT and PERP – DeFi Tokens Lead With Strong Bounces
2 min readThe Graph (GRT) has bounced at the $0.45 horizontal support area on June 22. It has increased by 73% since.
Compound (COMP) has also broken out from a descending resistance line but is still facing horizontal resistance at $470
Perpetual Protocol (PERP) has reclaimed the $5.70 horizontal area and broken out from a descending resistance line afterwards.
GRT
GRT has been moving downwards since reaching an all-time high price of $2.88 on Feb. 12. The downward movement continued until June 22, when a low of $0.42 was reached.
The low was combined with bullish divergence in the MACD signal line, RSI & Stochastic oscillator. These are strong signs of a bullish reversal that often lead to a significant upward movement. GRT has increased by 73% since the low.
After the bounce, the Stochastic oscillator made a bullish cross and the RSI moved above 50. These readings confirm the possibility that the trend is gradually turning bullish.
The shorter-term six-hour chart supports this possibility. It shows that the token has already broken out from a descending resistance line and validated it as support afterwards (green icon).
The closest resistance area is at $0.95. A breakout above it would likely trigger a very sharp upward movement.
Highlights
- GRT has bounced at the $0.45 horizontal support area.
- It has broken out from a descending resistance line.
COMP
COMP has been moving upwards since June 22. On July 2, it managed to reclaim the $350 horizontal area. This is a crucial development since the area had been acting as support since February, before turning to resistance in June (red icon).
After the reclaim, it is likely to act as support once more.
Technical indicators are bullish. The RSI has moved above 50 and the Stochastic oscillator has made a bullish cross.
The shorter-term six-hour chart shows a breakout from a descending resistance line. This preceded the reclaim of the $350 horizontal area.
However, COMP was rejected by the 0.382 Fib retracement resistance level at $470 and is decreasing.
The most likely scenario would have it creating a higher low at $350 before moving upwards once more.
Afterwards, the next resistances would be at $555 and $640, respectively.
Highlights
- COMP has broken out from a descending resistance line.
- There is resistance at $470.
PERP
PERP has been moving upwards since June 22, when it reached a low of $3.618. It created a higher low on June 27 and initiated a significant upward movement afterwards.
Similarly to GRT, it broke out from a descending resistance line afterwards. So far, it has reached a high of $9.20, doing so on July 5.
The closest resistance is at $10.90.
Technical indicators are bullish, supporting the continuation of the upward movement. The RSI has crossed above 50 and the Stochastic oscillator has made a bullish cross.
Highlights
- PERP has reclaimed the $5.70 horizontal area.
- It broke out from a descending resistance line.
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