Market Overview for Compound/Tether (COMPUSDT) - 2026-01-04

Summary
• Price action formed a bullish engulfing pattern near $26.10, followed by a strong rally toward $26.78.
• RSI reached overbought territory above 70, indicating potential for consolidation or profit-taking.
• Bollinger Bands expanded during the peak hours, suggesting rising volatility and a breakout attempt.
• Volume increased sharply during the rally but showed divergence in the final hour as price pulled back.
• 50-period moving average on the 5-min chart acted as dynamic support and resistance multiple times.

Compound/Tether (COMPUSDT) opened at $26.05 on 2026-01-03 at 12:00 ET, reached a high of $26.78, a low of $26.10, and closed at $26.74 by 12:00 ET on 2026-01-04. Total 24-hour volume was 16,598.44 and turnover was approximately $442,300.

Structure & Patterns

A bullish engulfing pattern emerged around $26.10, followed by a sustained rally into the early morning hours. The price then tested key resistance at $26.72 before forming a potential bearish divergence with volume in the final hours. A bearish pinocchio candle at $26.74 may hint at a short-term pullback.

Moving Averages and Momentum

The 50-period moving average on the 5-min chart acted as a pivot point, with price repeatedly testing and bouncing off this level. The 20-period line offered additional support during the initial phase. RSI rose above 70 during the rally, signaling overbought conditions and a possible reversal.

Volatility and Volume

Bollinger Bands showed a clear expansion in the early morning hours, aligning with the breakout attempt toward $26.78. Volume surged during this period, confirming the move. However, volume declined in the final hour despite a price pullback, hinting at weakening conviction.

Fibonacci and Retracement Levels

A key Fibonacci level at 61.8% of the recent 5-min swing from $26.10 to $26.78 sits near $26.58, which coincided with a minor pullback. Price later pushed through this level, suggesting continued bullish momentum. On the daily chart, the 61.8% retracement from a prior swing is near $26.60, aligning with recent consolidation.

The price may continue to test $26.80 in the coming hours if the breakout holds. However, traders should be cautious of the bearish divergence in the final 5-minute candles and the risk of a short-term pullback toward $26.55–$26.60.