Compound (COMP/USD) Market Structure Turns Bullish
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Market Analysis: COMPOUND Market Structure Turns Bullish
Compound market structure turns bullish after reaching the Fair Value gap in the dip discount of the bullish swing. The market was in an accumulation phase in April and June. The Stochastic revealed the market was oversold as a large bearish candle dipped into $23.700. The price dip preceded the transformation of COMPUSD into an impulsive phase.
COMPUSD Key Level
Demand Levels: $35.430, $23.700
Supply Levels: $44.000, $53.000
The later part of June featured a surge in the price of COMPUSD. The upthrust in price lacked pullbacks until reaching the resistance level of $53.000. The price action signaled a change in market direction with the formation of a head and shoulders pattern. The Moving Averages (periods 9 and 21) also crossed at the opening of August to usher in the bear trend.
The price dipped steadily until it tested a fair value gap. The fair value gap existed within the range of the bullish order block that preceded the price surge.
The rest of the fair value gap featured a very sharp rejection at first. The second test fostered a shift in market structure, leading to a bullish reversal.
Market Expectation
The Moving Averages (periods nine and twenty-one) are supporting the market ascent. The price is rising towards the previous high below the $52.000 key level.
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