Compound (COMPUSD) Consolidates Amid Bearish Pressure
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Price Analysis: COMPUSD Experiences Consolidation Between $88.00 and $68.10, with Bearish Momentum
COMPUSD has undergone a significant bearish reversal after failing to sustain its bullish momentum above the critical $120.00 supply level. From early November 2024, the price embarked on an aggressive uptrend, rallying from the $88.00 level and testing the $120.00 zone multiple times. While the price briefly breached this supply level on several occasions, the resistance held firm upon repeated retests, eventually prompting a shift to bearish market structure.
COMPUSD Key Levels
Demand Levels: $68.10, $49.70
Supply Levels: $88.00, $120.00
As the price declined, it went below the $88.00 level, a move that marked a critical bearish break of structure on the daily timeframe. This decline was solidified further when COMPUSD formed a double-top pattern at $88.00, confirming the bearish shift. The selling pressure pushed the price toward the $68.10 demand zone, where the market encountered a strong bullish reaction. Despite this reaction, the upward momentum waned, and the price struggled to reclaim the $88.00 level, further reinforcing the bearish outlook.
On the four-hour timeframe, the price action provides additional insights. The bullish reaction from the $68.10 demand zone triggered a short-term rally, briefly activating a four-hour Bearish order block. The rally met a substantial bearish rejection, evidenced by the formation of a large wick. This rejection highlights the strength of bearish sentiment in the current market structure.
On the daily timeframe, COMPUSD is consolidating within a range defined by the $88.00 resistance and the $68.10 support. The daily Moving Average confirms a bearish trend, with the price consistently trading below the indicator. Additionally, the Relative Strength Index (RSI) highlights sustained bearish momentum, steadily declining since its rejection from the overbought region in early December 2024. These factors collectively reinforce the higher timeframe bearish bias.
Market Expectation
Given the prevailing market structure and bearish signals, a downside breakout from the current consolidation is highly anticipated. If this occurs, the price is likely to target the next significant level at $49.70. Traders should monitor key levels closely, as any breach of the $68.10 demand zone could accelerate bearish momentum.
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