Compound (COMPUSD) Flips Bullish As Price Fills Buy Orders At Discount
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COMPUSD Analysis: Market Flips Bullish As Price Fills Buy Orders At Discount
COMPUSD flips bullish as the price fills buy orders at a discount. The current trading range remains bounded by the $63.80 resistance and the $35.60 price level. While the market’s environment is still bearish, a short-term rally is expected as the price leaves the oversold region.
COMPUSD Significant Zones
Demand Zones: $40.60, $29.90
Supply Zones: $63.80, $76.50
Since the MA Cross signaled to sell, the market’s order flow has been bearish. The sell signal came in as the MA Period 18 crossed the MA Period 40 to the downside. Before the cross, COMPUSD reversed after hitting the $63.80 resistance. This was a result of the influx of sell orders at the premium. During the rally into the premium, a breaker block was created on February 16, 2023. The creation of the breaker block was a result of the upside delivery of price after a short-term consolidation. The breaker block created during the rally caused a rejection of prices and a return to a fair value gap.
As the price leaves the oversold region, the downtrend might not continue until the 62.0% or 79.0% retracement level is reached. About four months before the surge in price from $29.90, the market was declining rapidly. The price of COMPUSD continued to depreciate as it broke all weak supports before hitting the $29.90 major support. Following the breakout of the previous support level of $40.60, the market converged into a consolidation phase. The consolidation phase continued until the bears made a final entry on December 16, 2022.
Market Expectation
COMPUSD is currently in a downtrend on the four-hour chart as it declines alongside a diagonal resistance. As the price enters the fair value gap, it is expected to expand to the upside. Due to the expansion, the price will likely break the $44.90 weak high and the diagonal resistance.
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