Compound (COMPUSD) Declines Steadily Approaching a Critical Demand Level

Price Analysis: Compound Shifts From a Strong Bullish Rally to a Bearish Reversal

COMPUSD initially exhibited a strong bullish trend, surging from $38.90 and forming multiple bullish candles with minimal retracement. The upward momentum continued, driving the price beyond the $114.40 resistance level, reflecting strong buying pressure.

COMPUSD Key Levels

Demand Levels: $65.00, $38.90
Supply Levels: $92.60, $114.40

However, after breaching $114.40, selling pressure intensified, leading to a price reversal. Bears regained control, pushing COMPUSD below key supply zones at $114.40 and $92.60. This shift in market bias resulted in the breakdown of the prevailing bullish trend, transitioning the price bias to bearish.

As selling pressure persisted, COMPUSD dropped below the $65.00 demand level, targeting the $38.90 support zone. The 4-hour timeframe illustrates a consistent downtrend, with price action indicating continued weakness. Additionally, the daily Moving Average confirms a bearish sentiment, as the price remains below the indicator, reinforcing the downward outlook.

Market Expectation

COMPUSD will likely test levels below $38.90, potentially entering a new price territory. However, the extent of the bearish move may be limited, as the daily Relative Strength Index (RSI) approaches the oversold region, suggesting a possible slowdown in selling momentum or a short-term corrective bounce.