Compound (COMP/USD) Poised for Bullish Trend Resumption
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Price Analysis: COMPUSD Shows a Bullish Structure Break With a Pullback and Signs of Renewed Upward Momentum
COMP/USD has recently demonstrated a major bullish break of structure, characterized by an impressive price surge from the $39.60 level to the $140.20 level. This movement marked a pivotal shift in market sentiment as the pair transitioned from a prolonged bearish trend into a robust bullish trend. The bullish momentum was notably impulsive, with large bullish candlesticks confirming the strength of the upward move.
COMPUSD Key Levels
Demand Levels: $68.70, $39.60
Supply Levels: $97.10, $140.20
This bullish breakout was preceded by a period of consolidation between the $68.70 and $39.60 levels, which played a critical role in reversing the prior downtrend. The consolidation phase likely allowed the market to absorb selling pressure, setting the stage for the subsequent bullish breakout.
After reaching the peak at $140.20, COMP/USD experienced a significant bearish retracement. This pullback was supported by signals from the daily Relative Strength Index (RSI), which indicated a decline in price strength as the asset approached overbought conditions. However, the retracement appears to be stabilizing as the price approaches the 0.618 Fibonacci retracement level. This level is often considered a key zone of support in technical analysis, suggesting the pullback may be nearing completion.
Further bullish indications are evident on the 4-hour timeframe. A structural shift in favor of buyers is accompanied by the formation of a double-bottom pattern near the retracement lows. This pattern, along with other bullish confirmations, suggests that COMP/USD could be preparing for another upward move.
Market Expectation
COMP/USD is likely to aim for the $97.10 level as its next immediate target. If bullish momentum persists, the pair could surpass this level and make another attempt to breach the $140.20 resistance. A successful breakout above $140.20 would signify continued bullish strength and open the door for further upside potential.
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