Compound (COMPUSD) Flips Bullish As Price Forms A Higher Low At Equilibrium
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COMPUSD Analysis: Flips Bullish As Price Forms A Higher Low At Equilibrium
COMPUSD flips bullish as the price forms a higher low at equilibrium. With the $35.60 and the $48.70 price levels defining the current trading range of the market, COMPUSD appears to have ended its retracement at the 50.0% Fibonacci retracement level.
COMPUSD Significant Zones
Demand Zones: $40.60, $29.90
Supply Zones: $63.80, $76.50
The last quarter of 2022 was filled with selling pressure as prices descended from the crest. The influx of the sell orders could be traced to the reaction of price towards the $63.80 supply zone. COMPUSD declined alongside a falling trendline until a sudden runoff on November 6, 2022, due to increased momentum. However, the momentum of the selling pressure declined as the year came to an end. The low of the last quarter was created on the last day of the year as the price bounced off the $29.90 support. The buying pressure from the $29.90 support could be seen as the price aggressively surged upward.
As a result of the aggressive expansion to the upside, inefficiency in the form of a liquidity void was created. The bulls finally exited the market, thereby causing a consolidation below the $63.80 price level. Immediately after the $63.80 price level was reached, COMPUSD crashed downward, also breaking the double bottom in the process. After the balancing of the inefficiencies created during the upward rally in January 2023, the price flipped bullishly. COMPUSD might remain bullish until the $63.80 resistance is broken.
Market Expectation
After creating a swing low at the $36.30 price level, the price headed upward to shift the market structure to the upside. While the market has flipped bullish on the four-hour chart, COMPUSD might still sink deeper into the discount zone before an upward expansion.
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