Compound (COMPUSD) Makes A Short-Term Rally As Price Hits The $23.20 Support
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COMPUSD Analysis: The Market Makes A Short-Term Rally As Price Hits The $23.20 Support
COMPUSD makes a short-term rally as the price hits the $23.20 support level. The $64.00 price level remains the local high of COMPUSD for the past six months. According to the RSI (Relative Strength Index), the market had not been overpriced since the last week of January 2023.
COMPUSD Significant Zones
Demand Zones: $23.20, $18.30
Supply Zones: $33.30, $47.00
Ever since the emergence of the falling trendline, the market has been declining along the trendline. COMPUSD keeps bouncing off the trendline without making a false breakout. However, before the transition into a bearish environment, the market was in a bullish environment. On December 31, 2022, a long-term low formed at $29.90 as the price rallied off into the premium. As the rally ensued, buying pressure was met with an opposing downward force. This caused a long period of consolidation until the price jerked upward to sweep the buy-side liquidity.
Following the grab of sell-side liquidity above the consolidation zone, a massive crash ensued against the bulls. The first phase of the crash lasted until reaching the $35.60 price level. By extension, the crash continued until the long-term low of $29.90 was invalidated. This invalidation happened after a period of consolidation that formed at the BMS (Break Of Market Structure). Currently, the market’s trading range on the daily chart lies between the $37.10 and $23.20 price levels. Once the falling trendline is hit, COMPUSD will likely resume its bearish overall trend.
Market Expectation
A four-hour Fair Value Gap formed around the $31.00 price level during the crash into the $23.20 demand zone. Owing to the buying pressure from the $23.20 demand zone, COMPUSD is rallying to fill the FVG (Fair Value Gap).
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