Compound (COMPUSD) Exhibits Bullish Retracement Amid Market Overselling
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COMPUSD Analysis: Price Makes A Bullish Retracement As The Market Becomes Oversold
COMPUSD makes a bullish retracement as the market becomes oversold. As suggested by the RSI (Relative Strength Index), an upward expansion is currently looming. However, since the direction of the overall trend is bearish, the bullish expansion might only last for a short time. This implies a possible resumption of the bearish trend is impending at the premium zone.
COMPUSD Significant Zones
Demand Zones: $47.00, $23.20
Supply Zones: $75.20, $86.00
Until the middle of June 2023, the market direction was bearish. COMPUSD converged downward after overcoming resistance at the $47.00 price level. Within the emerging falling wedge, the downtrend continued until the price failed to invalidate the $23.20 support. Owing to the failure to invalidate the $23.20 support, the bears exited the market. COMPUSD flared upward as it surged aggressively beyond the previous resistance at $47.00. A bearish order block formed at $36.00 during the aggressive expansion that led to the breakout.
According to the RSI, the market left the oversold state as the falling wedge and the $47.00 previous resistance failed. The uptrend that ensued afterward continued in fractals until the $86.00 supply zone was reached. The $23.20 low and the $86.00 high formed, respectively, the low and the high of the current trading range. Following the CHOCH (Change Of Character) at $65.0, the market’s order flow is now bearish. COMPUSD consolidated at $56.00 after a break of structure to the downside early this month.
Market Expectation
COMPUSD is currently in a bearish trend on the four-hour chart. However, the price seems to be retracing after the RSI indicated an oversold state. As the price retraces upward, the market will likely return to the bearish order block formed during last week’s consolidation.
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