Market Analysis: Compound Buyers Lose Form
Compound (COMP/USD) buyers lost their stance against sell traders this week. This week, the COMP/USD market witnessed a significant setback. Buyers failed to breach the $58.560 price zone, resulting in a notable loss in the price. The bearish momentum weakened considerably, with sellers now reducing their buying efforts. Strong reinforcement is now essential for buyers to achieve a breakthrough at the $58.560 significant level.
COMPOUND Key Levels
Resistance Levels: $90.710, $81.270
Support Levels: $58.560, $39.390
Compound price has experienced a period of low liquidity flow, with both buyers and sellers lacking sufficient drive for months. From August to October, the compound price remained relatively stable.
However, buyers showcased their strength early this month, despite a limited bullish liquidity surge. In the current week, buy liquidity struggled to sustain above the $58.600 significant level. It indicates a market struggle as sellers aim to regain control.
Volatility on the daily chart is decreasing, reflecting a decline in buyer momentum. The inability to breach the $58.600 price zone this week suggests that buyers have lost their accumulated strength. The Bollinger Bands remain compressed due to a lack of price volatility. It highlights the need for stronger buying pressure to override selling strength in the market. Although prices may evolve slowly, traders should keep watch as the contention continues. The 4-hour chart time frame also consists of price sentiment compressed on the Bollinger Band Indicator. Compound buyers seem to have lost confidence; sellers may find it easier to penetrate more next week.
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