Compound (COMPUSD) Price Aims Higher as It Leaves Oversold Region
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COMPUSD Analysis: Prices aim higher as the market leaves the oversold region
COMPOUND aims higher as the market leaves the oversold region. While the overall market’s direction is downward, there exist some opportunities for a short-term rally in favor of the COMPUSD sellers in the market. COMPUSD sellers set their sights on supply zones as the market prepares to exit the oversold region.
COMPUSD Significant Zones
Demand Zones: 30.70, 26.20
Supply Zones: 65.80, 43.40
The market has been in massive decline for a long time. From April to June of this year, the market provided almost no buying opportunities for COMPUSD buyers. In May 2022, the market broke into an oversold region, and the bearish momentum decreased significantly. However, the market’s order flow remains bearish as prices keep moving from premium to discount. Until the recent breakout, COMPUSD ranged between the 43.40 and 30.70 price levels.
While COMPUSD kept ranging within the 43.40 and 30.70 price levels, the market sank deeper into the liquidity pool below the range’s low to grab sell-side liquidity (SSL). While capturing the sell-side liquidity, the market entered an oversold region, as indicated by the Relative Strength Index (RSI). This RSI reading further confirmed why COMPUSD is to retrace or reverse to the upside. The supply zone at 43.40 appears to be very strong and significant, as confirmed by the higher Fair Value Gap.
Market Expectation
Following the structure break on the four-hour chart, the market might expand upward into the liquidity void as it goes to execute sell orders for the next bearish phase.
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