Compound Market Transforms into Consolidation
Estimated Reading Time: 2 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
COMPUSD Analysis – Compound Stalls at Key Level
In December, Compound (COMPUSD) posted a failure swing. A new high formed but failed to break the previous peak. As a result, redistribution took over and triggered a sharp price decline.
Compound Key Levels
Demand Zones: $39.90, $30.00
Supply Zones: $86.00, $121.60
Earlier, in November and December, the Smoothened Heikin Ashi candles flashed strong green. They aligned neatly below the candlesticks, confirming a powerful uptrend. At the same time, the Elder Ray Bull and Bear Power indicator showed clear buyer control.
However, momentum shifted in December. The failure swing at $121.60 cracked bullish strength. Then, COMPUSD formed a funnel pattern around the $86.10 zone. This pattern — with higher highs and lower lows — often traps breakout traders. Between late December and early January, price consolidated inside this structure, sometimes called “seek and devour.”
Market Expectation
In January, the price pressed hard against the Smoothened Heikin Ashi candles, which quickly turned into resistance. Selling pressure intensified. As a result, COMPUSD crashed down to $36.90.
Now, sellers appear exhausted. The price continues to consolidate above the $36.90 support. This kind of stiffness usually precedes a strong breakout. Soon, a decisive move is likely. A breakout aligned with market structure will reveal the next major trend.
You can purchase Lucky Block here. Buy LBLOCK
Note: Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
