Compound (COMPUSD) Reverts From Discount As The Market Leaves Oversold State
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COMPUSD Analysis: Price Reverts From Discount As The Market Leaves Oversold State
COMPUSD reverts to a discount as the market leaves the oversold state. The RSI (Relative Strength Index) reveals that the market is oversold. This was because of the consistent depreciation of the Compound’s value since the year’s third quarter began. While the market’s structure is still bearish, a major upward retracement is now highly probable.
COMPUSD Significant Zones
Demand Zones: $22.20, $3.00
Supply Zones: $54.60, $86.00
COMPUSD experienced difficulty crossing the 50.0 level of the RSI indicator until June 2023. This indicated that the bears were in total control of the market, while the bulls had to find a perfect entry in the discount zone. The failure of the bulls to overtake the bears proved abortive until the discount zone was eventually reached. At $22.20, the market reverted upward along with the RSI indicator. The RSI indicator tapped into the oversold state, revealing that the market had to make a bullish reversal.
The reversal from the discount zone eventually led to a total reversal which did not end until over four weeks later. The MA Cross flipped bullish, signaling the bulls’ presence after several months of the bears’ dominance. However, the bullish expansion ended after the major high formed at $86.00. After converging into a head and shoulders pattern at the premium, COMPUSD crashed massively, invalidating the diagonal neckline. As per the RSI indicator, the market now has to revert upward due to the current oversold state of the market.
COMP/USD Market Expectation
COMPUSD began its correction wave after the formation of the month’s low at $25.40. The market is yet to make a significant retracement to the upside due to the four-hour bearish order block at $45.00. However, the four-hour bearish order block will likely sponsor the bullish expansion to the premium zone.
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