Compound (COMPUSD) Undergoes a Bullish Reversal
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Price Analysis: COMPUSD Experiences a Strong Bullish Rally to a Corrective Phase
In November 2024, COMP/USD experienced a notable bullish trend, originating from the $38.90 demand level. This upward momentum sustained itself until early December 2024, peaking at $139.80 before reversing into a corrective phase.
COMPUSD Key Levels
Demand Levels: $69.10, $52.70
Supply Levels: $91.60, $114.60
The subsequent decline saw the price fall below the $91.60 supply level, supported by the daily Moving Average. However, despite the bearish momentum, the demand levels remained resilient, preventing a deeper pullback. This stability signaled a renewed bullish interest as the price began trending upward once again.
A critical indicator of this resurgence is the daily Relative Strength Index (RSI), which reflects a strengthening bullish momentum. Although the price has only slightly moved above the daily Moving Average, this behavior aligns with the early stages of a bullish reversal. On the 4-hour timeframe, a closer view reveals a decisive breach of the trendline resistance, further confirmed by the formation of a reverse head-and-shoulders pattern—a classic indicator of a bullish continuation bias.
Market Expectation
The current market price action suggests a high probability of COMP/USD breaching the $91.60 supply level in the coming sessions. The rising RSI on the daily chart underscores this expectation, pointing to the potential for a sustained bullish movement as the price targets the previous high of $139.80.
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