Compound (COMPUSD) Declines Towards the Daily Fair Value Gap

Price Analysis: The Market Prepares to Further Decline

In mid-July 2023, COMPUSD reached a significant peak, which ultimately established a record in its price history. This pinnacle marked the all-time high for the asset before it entered a phase of progressive appreciation, culminating in another major high in early March 2024.

Subsequent price action, however, failed to sustain this upward momentum. The emergence of lower highs and lower lows has since characterized a definitive bearish trend that persists in the current market landscape.

COMPUSD Key Levels

Demand Levels: $49.40, $35.30
Supply Levels: $76.60, $97.40

A critical low was identified at the $49.40 threshold, which triggered a corrective upswing in price. Yet, recent readings from the daily Relative Strength Index (RSI) suggest that the asset is exiting the overbought region. This transition implies a probable continuation of the bearish trend, as COMPUSD appears poised to bridge the Fair Value Gap, with a downside target near the $35.30 level.

Conversely, the 4-hour chart presents a contrast, where the RSI is dipping into the oversold territory. This is indicative of an imminent shift, potentially ushering in bullish momentum. Despite this, it is anticipated that the Fair Value Gap will be addressed in a shorter timeframe before the pair experiences further declines.

Market Expectation

The price is expected to fill the 4-hour timeframe Fair Value Gap (FVG), followed by a bearish trend aiming for a fair value gap below $35.30.

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