Compound Bearish Pressure Persists as Price Drifts Lower
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COMP/USD Price Analysis – Compound Sellers Maintain Grip
Compound market continues to be under the control of sellers as the corrective phase that began last week deepens. After a promising rally was halted at a significant resistance zone, the price has reversed course and established a clear short-term downtrend. With technical indicators on multiple timeframes confirming the bearish momentum, the market is poised to continue exploring lower levels within its long-term trading range
Compound Key Levels
Support Levels: $38.87
Resistance Levels: $50.36, $56.92, $62.93
The daily chart for COMP/USD shows a market operating within a wide, choppy range, with the most recent major move being a strong rejection from the $56.92 resistance area. This failure by the bulls to sustain their rally has led to a significant downturn, putting the market firmly into a corrective mode.
Currently trading at $46.33, the price is being driven lower by persistent selling pressure. The failure to break higher has reinforced the neutral, range-bound nature of the market on a macro scale, but the immediate momentum is unequivocally bearish. The next major downside target for sellers is the long-standing support floor at $38.87.
The Parabolic SAR has its dots positioned above the price candles, confirming that the trend on this timeframe has shifted to the downside. The Relative Strength Index (RSI), at 43.76, is trading below the neutral 50-mark and is pointing lower, indicating that bearish forces are in control of the market’s momentum.
Market Expectation
Sellers are dictating the short-term price flow. Any minor rallies have been quickly sold into, confirming the weakness in the market and the conviction of the sellers. The path of least resistance remains to the downside, with the price likely to continue grinding lower as long as it stays below the Parabolic SAR resistance.
The indicators on this timeframe confirm the strong bearish control. The Parabolic SAR dots are clearly situated above the price, acting as a dynamic trailing resistance and confirming the bearish trend. The Relative Strength Index (RSI), at 39.47, is positioned in bearish territory. Its inability to reclaim the 50 level validates the persistent selling pressure and shows that bears remain firmly in command of the short-term trend.
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