Compound at Critical Support Amid Conflicting Signal
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
COMP/USD Price Analysis – Compound Hint Pressure
Compound market is currently at a critical inflection point, as the price tests a major long-term support level. While the higher timeframe shows significant bearish pressure and a clear downtrend, a bullish divergence is emerging on the short-term chart. This conflict of signals suggests that the market is poised for a decisive move, with the fate of the $39.46 support level being the key factor.
Compound Key Levels
Support: $39.46, $42.00
Resistance: $45.67, $50.36
On the daily chart, the bearish case is clear. Following a rejection from the upper part of its range, COMP has been in a steady decline. The price is now pressing down on the lower Bollinger Band and testing the crucial horizontal support at $39.46.
This price action has created several bearish Fair Value Gaps (FVGs) on the way down, which will now act as areas of resistance. The bearish momentum is strongly confirmed by the Moving Average Convergence Divergence (MACD) indicator.
The MACD has recently crossed below the zero line, a significant signal that the trend’s momentum has turned definitively bearish. With the MACD and price action aligned, a breakdown below the $39.46 support remains a high probability.
Market Expectation
The 4-hour chart, however, presents a potential counter-argument. While the trend is clearly down, a bullish MACD divergence is forming. As the price has printed new lows, the MACD has formed a higher low, and its lines have just executed a bullish crossover. This divergence indicates that the downward momentum is weakening and that selling pressure may be nearing exhaustion.
This is a classic signal that often precedes a short-term bounce or relief rally. If this divergence plays out, the first target for buyers would be the middle Bollinger Band around $42.45.
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 result.
