Compound (COMPUSD) Enters Discount Zone, Fails to Decline Further
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
COMPUSD Analysis: Market Fails to Decline Further As Price Enters Discount Zone
COMPUSD fails to decline further as the price enters the discount zone. Following the breakout from the head-and-shoulders pattern, COMPUSD crashed massively into the discount zone. According to the Stochastic Oscillator, the market is currently oversold. It implies that a reversal from the discount zone is imminent.
COMPUSD Significant Zones
Demand Zones: $23.20, $3.00
Supply Zones: $58.30, $86.00
A massive decline to the discount zone followed the formation of the major swing high at $63.80. The crash from the $63.80 high continued until the previous low of $29.90 was invalidated. Following the sell-side liquidity grab and the rejection at the $23.20 demand zone, COMPUSD began a new trend to the upside. As the Stochastic Oscillator showed the need for the price of Compound to appreciate, more bulls stormed the market.
The presence of the bulls in the market after the indication provided by the Stochastic Oscillator caused an expansive move. As the price continued to expand upward from the discount zone, COMPUSD converged into a head-and-shoulders pattern. On August 2, 2023, COMPUSD broke out of the head and shoulders pattern with a bearish marubozu candlestick. The decline continued until reaching a bullish order block in the discount zone. According to the Stochastic Oscillator, COMPUSD is upbound as it leaves the oversold state.
Market Expectation
On the four-hour chat, COMPUSD is heading to the upside. The upward expansion was due to the rejection of the price at the psychological level of $36.00. Should the four-hour bearish order block fail to drive beyond the current swing low, COMPUSD might continue expanding upward for a long time.
You can purchase Lucky Block here. Buy LBLOCK
Note: Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
