Compound (COMPUSD) Dives After Hitting Major Resistance
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COMPUSD Analysis: Price Dives After Hitting Major Resistance
COMPUSD dives after hitting major resistance. The major diagonal resistance in the market has proven strong and resistive toward price after three different strikes on it. The market’s overall direction cannot be considered bullish until the diagonal resistance is successfully broken.
COMPUSD Significant Zones
Demand Zones: $29.90, $20.20
Supply Zones: $70.60, $56.90
The current trading range of COMPUSD is defined by the $65.80 and $29.90 price levels. Now that the 79.00% Fibonacci retracement level has been reached in the premium, a downward dive is anticipated by market participants. However, the COMPUSD buyers remain optimistic about the market at the mitigation block array. The price might fill up the buy orders therein, which might then result in a short-term or mid-term expansion to the upside. As COMPUSD rallied with tremendous momentum from the $29.90 major support, the strong preference for price reaching the premium could be seen.
In the middle of August 2022, the market began a new trend in a downward direction. The first impulse leg into the downtrend ended before the end of the month. The second impulse leg was a retracement that ended at a premium range within the trading range of the first impulse leg. The third impulse leg might end up being the longest, as it lasted for about four months. As the price bounced off the diagonal resistance, the downtrend is currently in its final phase.
Market Expectation
The price was rejected at the major support level of $29.90 on December 30, 2022. Price began to rally until the distribution phase emerged at the $56.90 supply zone. On the four-hour chart, the RSI indicator indicated a bearish divergence. COMPUSD is expected to remain in a downtrend for an extended period.
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