Compound (COMPUSD) Confirms Bullish Structure with Formation of Higher Lows
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COMPUSD Analysis: Bullish Structure Becomes Confirmed As Price Forms Higher Lows
COMPUSD bullish structure becomes confirmed as the price forms higher lows. Since the indication of the hidden bullish divergence, the market has been trending upward. Buyers appear to be encouraged to aim for a higher high as a result of the recent higher low.
COMPUSD Significant Zones
Demand Zones: $39.70, $35.60
Supply Zones: $48.70, $63.80
Before the indication of the bullish divergence, the market was descending the crest. Due to the selling pressure at the $63.80 supply zone, the COMPUSD buyers exited the market in favor of the bears. The previous support at $48.70 was broken, and the price dived deeply into the discount zone. According to the Relative Strength Index (RSI), the market crossed below the 30.0 level, thereby indicating a buy signal. In confluence with the lower low created on December 31, 2022, the RSI revealed a bullish divergence.
Owing to the indication of the bullish divergence, the market has been expanding to the upside. During the sudden expansion of prices in January 2023, a liquidity void was created. While the overall outlook still appears bearish, the liquidity void seems to have been filled. Moreover, the reaction towards the FVG and the bullish order block shows the presence of the bulls in the market. The lower low created due to the reaction toward the point of interest has confirmed the market’s structure is bullish. COMPUSD is likely to keep expanding upward even beyond $48.70.
Market Expectation
Following the liquidity grab below the relative lows, COMPUSD has been bullish on the four-hour chart. The trading range currently lies between the $44.20 and $39.70 price levels. Price is expected to keep expanding upward after reversing at the 62.0 retracement level.
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