Compound (COMPUSD) Dives as Price Hits a Bearish Order Block
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COMPUSD Analysis: COMPUSD Dives as Price Hits a Bearish Order Block
The price of the COMPUSD dives as it approaches the bearish order block. Ever since the invalidation of the daily bearish order block around the $39.00 price level, the value of COMP has been appreciating against the U.S. dollar. However, COMPUSD seems to be in a distribution phase as the price finds it difficult to go beyond the bearish order block at the $62.00 price level.
COMPUSD Significant Zones
Demand Zones: $47.40, $26.20
Supply Zones: $93.40, $147.90
Between September 2022 and January 2023, COMPUSD was respecting a diagonal resistance as it crashed algorithmically to the downside. Before the falling trendline emerged, the market’s direction was upward on the daily chart. The upward bias emerged as a result of the price’s reaction toward the major support at the $26.20 price level. In mid-August 2022, the price broke a rising trendline to the downside, only to retest it as the price headed upward.
COMPUSD flipped bearish immediately after returning to the bearish order block created in August 2022. This bearish order flow lasted from October until the end of 2022. According to the Relative Strength Index (RSI), COMPUSD is in a correction phase due to the overbought region that was reached as a result of the preceding upward expansion. The current trading range of COMPUSD is defined by the swing low and swing high at the $29.90 and $61.70 price levels, respectively.
Market Expectation
COMPUSD is expected to return to the four-hour bearish order block at the premium as the price falls. Before it then resumes the market’s downtrend into the daily mitigation order block.
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