Compound (COMP/USD) Shows Downtrend Exhaustion
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COMP/USD Price Analysis: COMP/USD Bearish Trend Loses Momentum
COMP/USD indicates that bearish pressure is weakening. Sellers previously pushed the market down by 48.99% following a bearish breakout in October., The market is gradually transitioning into a ranging phase around the $24.30 level. This development may signal a potential trend reversal in favor of the bulls, or alternatively, an extended consolidation phase.
COMP/USD Key Levels
Resistance Levels: $38.61, $60.26
Support Levels: $24.30, $24.10
On the daily timeframe, a symmetric wedge pattern formed and eventually broke to the downside. It led to a retest occurring on 13 September, confirming the prevailing downtrend. Price then completed a short bearish move of 48.99% before entering consolidation around the $24.30 level.
A clear confluence between the trendline and horizontal support at this level has limited further downside, as evidenced by repeated price bounce within this zone.
On the 4-hour timeframe, the 9-period moving average crossing above and below the 21-period moving average between 17 December and 22 January further confirms the ranging market structure observed on the daily timeframe.
Market Expectation
The sole strong momentum candle formed on 11 October was quickly rejected by bullish pressure. All of a sudden, Bears regained control of the market. On the 4-hour timeframe, the Relative Strength Index (RSI) enters oversold territory as price approaches the $24.30 support level, suggesting a potential shift in market.
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