Compound (COMPUSD) Price Remains in the Mud Pool
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Market Analysis: Price Remains in Mud Pool
The test of the support level of $26.00 injected volatility into the Compound market. The sensitive region aided the influx of buyers. Within a few days, the COMPUSD price pumped almost three times its original price. A pullback from $70.50 provided an opportunity to engage more buyers. The second wave pushed the price to 85.00.
COMPOUND Key Levels
Demand Levels: 32.40, 26.00
Supply Levels: 70.50, 85.00
A three-top bearish reversal pattern gave an early signal of the market crash in August. The signals were clearer with the Williams Percent Range lurking in the overbought region. Shortly after, the swing low of 58.50 was swept. Compound market purged rapidly with a demand level of 36.30. The Moving Averages (periods 30 and 50) repositioning above the daily candles at this period was to establish the massive sell-off.
Compound price has remained in the mud pool since the test of $36.30. The price appears to be trapped below $52.40. Small-sized candles have followed one another in the last few days to reveal the lack of momentum in the market. This can also be a positive sign for a massive breakout.
Market Expectation
The market structure on the 4-hour chart is also bearish. The Moving Averages on the 4-hour timeframe also show the market weakness. The market is currently in dip discount as the Williams Percent Range signifies the seller’s exhaustion. A push above $58.50 will likely establish a turnaround for Compound’s weakness.
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