Compound (COMPUSD) Experiences a Bullish Retracement
Estimated Reading Time: 2 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Price Analysis: Bearish Trend With Expectations for a Bullish Retracement
The COMPUSD trading pair has recently demonstrated a significant bearish break of structure, affirming the continuation of the prevailing downtrend in the market. Despite repeated attempts, COMPUSD was unable to surpass the resistance level at $43.60, indicating strong bearish control. However, the trend experienced a notable shift when the price decisively breached this level, leading to a significant bearish momentum.
COMPUSD Key Levels
Demand Levels: $43.60, $33.60
Supply Levels: $54.50, $62.50
The market’s bearish sentiment was further reinforced as prices descended towards the $33.60 demand level. At this juncture, a pronounced bullish rejection was observed, suggesting a temporary shift in momentum. This bullish resurgence is primarily evident in the daily Relative Strength Index (RSI), which shows a recovery from oversold conditions, hinting at increasing bullish strength.
On the 4-hour chart, there is a discernible short-term bullish trend, as evidenced by the price’s position above the Moving Average—a classic bullish signal. This suggests the market is experiencing a retracement rather than a reversal of the broader bearish trend.
Market Expectation
Despite the current bullish momentum, the overall market stance for COMPUSD remains bearish. The market is expected to undergo a retracement phase, aiming to fill the identified daily Fair Value Gap. Price anticipates that after this retracement, the trend may resume its downward course, potentially breaking through the $33.65 support level.
You can purchase Lucky Block here. Buy LBLOCK
Note: Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
