Compound (COMPUSD) Drops Following a Stop Hunt at Old High
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COMPUSD Analysis: Price Drops Immediately After Stop Hunting at Old High
COMPUSD begins to fall immediately after a stop hunt at the previous high. Following the buy-side liquidity grab above the $61.70 price level, the price sank downward as it entered the daily bullish order block. The bullish order block might, however, be mitigated if it fails to reject the price to the upside.
COMPUSD Significant Zones
Demand Zones: $47.40, $26.20
Supply Zones: $97.70, $174.90
While the bears’ presence in the market becomes more noticeable, the overall trend of the market still looks bearish. Invalidation of the eight-month high is needed to confirm that the market is typically bullish. Since the emergence of the bullish trend, which emerged as a result of the bounce off the major support at the $26.20 price level, the bears have been in control of the market. However, as the new year began, COMPUSD saw a surge in price due to a sudden increase in buying pressure.
While the sudden surge in price broke the previous resistance at $47.40, the eight-month high remains unbroken. The eight-month high was created as a result of the rejection of price to the upside from the $26.20 demand zone. After the creation of the local high, COMPUSD made a quick decline toward the $47.40 support. A short rally emerged after the bounce off the $47.40 support, after which the price declined. The first phase of the decline lasted below a diagonal resistance, which was later broken as a result of the sudden upward expansion in January 2023.
Market Expectation
Following the invalidation of the old high at $61.70, COMPUSD flipped bearish on the four-hour chart. The bullish order block is expected to only retrace the price to the upside without breaking the new high.
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