Compound (COMP/USD) Undergoes a Bearish Trend
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Price Analysis: COMP/USD Resumes a Bearish Trend Following the Rejection From the $123.70 Resistance
The COMP/USD pair has exhibited notable price movements throughout 2024, marked by significant volatility and trend reversals. After a sustained decline in early April, where the price dropped below the $66.00 demand level, the pair entered a consolidation phase, ranging between $66.00 and $38.40.
COMPUSD Key Levels
Demand Levels: $66.00, $38.40
Supply Levels: $92.30, $123.70
A bullish breakout in early December 2024 signaled a potential recovery, with the price surpassing the $92.30 resistance level. This upward momentum continued briefly, allowing the pair to breach the $123.70 level. However, the breakout lacked strength, and the price faced immediate rejection. The reversal at $123.70 marked the end of the bullish phase, triggering a strong decline that breached the bullish trendline and reignited bearish momentum.
Technical indicators confirm the bearish outlook. The daily Moving Average (MA) reflects a bearish signal, as the price has fallen below the indicator. Additionally, the Relative Strength Index (RSI) on the daily chart shows declining momentum, further underscoring the dominance of sellers. On the 4-hour chart, the price initially regained the $92.30 supply level, but the subsequent bullish momentum was short-lived. The formation of a failed high indicates the growing likelihood of a continued downtrend.
Market Expectation
Given the prevailing bearish signals, COMP/USD is expected to breach the $66.00 level, with the potential for further declines as bearish momentum intensifies.
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