Compound (COMP/USDT) Extends Bearish Momentum After Support Breakdown
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COMP/USDT Price Analysis: COMP/USDT Continues Downtrend After Breaking Three Support Levels
COMP/USDT remains in a strong bearish trend, although the market is reacting to the support at price level $15.90. Despite this reaction, price is still expected break below support.
COMP/USDT Key Levels
Support Levels: $15.90, $13.50
Resistance Levels: $19.00, $23.50
On the daily timeframe, the market formed a bearish head and shoulders chart pattern from October to November, which led to the sell-off that followed. The market reacted to support levels at $23.54 and $18.97 and still broke out following this trend. Given that there is no spike in volume at the support level of $15.90, it is likely to break below this support, as the volume from buyers is not strong enough to reverse the trend.
On the daily timeframe, the market pulled back from the support to the discount zone of the Fibonacci Retracement (0.5%), where it continued its bearish trend, which is likely to lead to another Break of Structure (BOS). Price remains below the 200 Moving Average, confirming the overall bearish direction of the market.
Market Expectation
On the 4-hour timeframe, price is forming a descending triangle chart pattern at the support level, signalling that buyers are trying to resist, but sellers are gaining momentum. Any upward movement at this stage is expected to be corrective unless price reclaims and holds above major resistance levels.
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