Compound (COMPUSD) Retests $86.000 Resistance As Sellers Find Opportunity To Short
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COMPUSD Analysis: Price Revisits $86,000 Resistance Level as Traders Seize Shorting Opportunities
COMPUSD retests $86.000 resistance as sellers find an opportunity to short. The market has been expanding upward for quite a while. A major correction is imminent as the market enters a premium zone. As suggested by the Stochastic Oscillator, the market will correct to the downside. This is a result of the indication that the market is already overpriced.
COMPUSD Significant Zones
Demand Zones: $35.600, $26.200
Supply Zones: $86.000, $165.800
Coming from the long-term low created at $23.150, COMPUSD has been expanding in fractals to the upside. The long-term low formed after a deep sink into the discount zone. Price breached the $26.200 support before making a U-turn to the upside. COMPUSD has since cleared weak resistance levels until reaching the major supply zone at $86.000. This continuous expansion and invalidation of weak resistance levels caused the market structure to shift against the COMPUSD sellers.
A prolonged and gradual decrease occurred before the market dynamics changed in favor of an upward trend. The price crashed into the discount zone after creating a swing-high at $63.800. As indicated by the Stochastic Oscillator, COMPUSD entered an oversold region before experiencing a massive rally on June 10, 2023. The price moved expansively to the upside and even further as the MA Cross gave a buy signal. This caused the invalidation of the swing high created at the $63.800 price level.
Market Expectation
COMPUSD is still bullish on the four-hour chart. However, now that the $86.000 supply zone is met, the price is expected to correct to the downside. Consequently, COMPUSD sellers will likely take control of the market here until the bulls return to a discount zone.
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