Compound (COMPUSD) Plummets After Forming Three Rising Peaks
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Price Analysis: Compound Remains in Bearish Phase
Compound reached a peak price of $121.740 in December 2024, completing a three-rising peak pattern and forming a swing high. This pivotal moment marked the beginning of a sharp price decline, which is still unfolding.
COMPUSD Key Levels
COMPUSD Key Levels -
Demand Levels: $40.400 and $25.570
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Supply Levels: $121.740 and $98.000
A review of the daily chart reveals that the Relative Strength Index (RSI) indicated an overbought market in July 2023, March 2024, and December 2024. On each of these occasions, the market formed swing highs that preceded a price decline. Furthermore, the Smoothed Heikin Ashi candles turned red, confirming a price reversal.
In December, a prominent rejection candle extended beyond the supply zone of $121.740, signaling the market’s unwillingness to push prices higher. This rejection led to a price decline, which temporarily paused at $69.079 before continuing its downward trajectory towards the support level of $40.400.
Market Expectation
The demand level of $40.400 has historically served as a strong support zone, preventing further price dips between August and November last year. As the price approaches this level, the RSI is already indicating oversold conditions. This may present an opportunity for bulls to recover and potentially reverse the current downtrend.
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