Compound Correction Continues as Bearish Momentum Strengthens
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COMP/USD Price Analysis – Compound Sellers Remain in Firm Control
Compound market is currently in a confirmed corrective downtrend after a promising rally in July was decisively rejected from a major resistance zone. The failure of buyers to sustain upward momentum has handed control over to sellers, who are now guiding the price lower. Technical indicators across multiple timeframes have turned bearish, suggesting that the current downward pressure may continue as the market retreats towards the lower end of its long-term range.
Compound Key Levels
Support Levels: $38.80
Resistance Levels: $50.30, $56.90, $62.90
COMP/USD shows an asset that remains locked within a wide and volatile trading range. The most recent significant move was a strong rally from the range lows, which ultimately failed around the $56.90 resistance level. This rejection has triggered a sharp reversal, erasing a substantial portion of the gains accrued during July.
Currently trading at $47.40, the market is being driven lower by sustained selling pressure. The market’s inability to break key resistance has reinforced the overarching neutral, range-bound structure, but the immediate momentum is clearly bearish. The next major area of interest for both bulls and bears will be the long-term support floor at $38.80.
The Momentum indicator is in negative territory with a reading of -1.70, confirming that the recent price action is being driven by selling pressure. The Percentage Price Oscillator (PPO) has also printed a clear bearish crossover, with the PPO line below the signal line and the histogram printing negative bars. This is a strong signal that upward momentum has faded and a corrective trend is in effect.
Market Expectation
The 4-hour chart provides a detailed view of the established downtrend. After peaking in mid-July, the price has formed a clear sequence of lower highs and lower lows. Trading at $47.36, for a loss of -0.25%, the price is consolidating near the recent lows, with bears still firmly in control of the price action.
The immediate trend is unequivocally bearish. Any rally attempts have been shallow and have failed to reclaim key resistance levels, such as the $50.36 mark. The path of least resistance remains to the downside, as sellers continue to pressure the market towards the next major daily support level. The indicators on this timeframe confirm the strength of the bearish trend. The Momentum indicator is deep in negative territory at -2.70, signifying strong and persistent selling pressure.
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