Market Overview for Compound/Tether (COMPUSDT) on 2025-11-05

Summary
• Price opened at $31.94 and declined to a low of $29.66 before closing at $31.54 within 24 hours.
• Notable bearish momentum seen during the early session, followed by a moderate rebound in late hours.
• Volume remained elevated during the price drop, suggesting increased bearish participation.

Price Behavior and Structure

Compound/Tether (COMPUSDT) opened the 24-hour period at $31.94 and experienced a sharp decline, reaching an intraday low of $29.66 before recovering somewhat in the later hours. The price closed at $31.54, slightly above the midday levels. The pattern shows a clear bearish bias in the morning with a moderate countertrend rally. Notable bearish engulfing patterns were visible between 12:00 and 19:00 ET, confirming key bearish momentum during that period.

The market appears to have tested a dynamic support level at around $30.00–$30.50 before buyers stepped in, indicating potential short-term support. Resistance levels appear to be forming above $31.80 and $32.10, with a recent high of $32.15 suggesting a possible near-term ceiling. A failure to break above this resistance could reinforce the bearish sentiment.

Technical Indicators and Momentum

The 20-period and 50-period moving averages on the 15-minute chart are both in a downtrend, with the 50-period line acting as a bearish signal for the current price. Meanwhile, the daily chart shows a broader bearish bias with the 200-period moving average acting as a strong resistance level.

On the momentum front, the RSI moved into oversold territory near $29.66 and began to recover, suggesting the potential for a short-term bounce. The MACD line crossed below the signal line during the early bearish phase, confirming the downtrend. However, a recent MACD crossover to the positive side could signal an emerging bullish bias if the price manages to hold above $31.50.

Bollinger Bands were wide during the drop, indicating increased volatility, and the price currently sits near the middle band. A contraction in the bands may suggest a period of consolidation ahead.

Volume and Turnover Analysis

Total volume for the 24-hour period was 151,702.98, with a notable spike during the early bearish phase between 19:00 and 20:30 ET, when volume hit 4,800.84, and turnover surged as a result. The strong bearish volume confirmed the price decline during that time. However, in the late hours, volume normalized, and the price began to stabilize, indicating a potential shift in sentiment.

There was no significant divergence between price and volume in the latter part of the session, suggesting that the current stabilization may be genuine and not a false signal.

Fibonacci Retracements

The recent 24-hour swing from $31.94 to $29.66 shows key Fibonacci retracement levels at 38.2% ($30.76) and 61.8% ($31.21). The price has stabilized near the 61.8% level and may test this area again. A break above $31.21 could signal a stronger recovery, while a retest of $30.76 could lead to further consolidation.

Backtest Hypothesis

The attempted Bullish-Engulfing pattern backtest for COMPUSDT encountered a data-service error. To proceed, we have two practical options:
1. Retrieve raw daily OHLC data and compute the Bullish-Engulfing signals locally, which often bypasses issues with precomputed pattern feeds.
2. If available, provide a list of historical Bullish-Engulfing signals for COMPUSDT since 2022, enabling immediate backtesting.

Both approaches are valid and commonly used in market analysis. A successful implementation will allow us to assess the predictive power of the pattern in this asset class, particularly around key support and resistance levels identified in this overview.