Market Overview for Compound/Tether (COMPUSDT) – 2025-11-07

Summary
• COMPUSDT broke above key resistance, closing near its 24-hour high on strong volume.
• Price formed bullish continuation patterns with positive momentum seen in RSI.
• Bollinger Bands show moderate volatility with price near the upper band.

At 12:00 ET – 1, COMPUSDT opened at $31.39 and closed at $34.47 after hitting a high of $34.63 and a low of $31.11. Total volume for the 24-hour period was 98,741.46, with a turnover of $3,330,866. The price action suggests a strong breakout from a prior consolidation phase, indicating a potential shift in sentiment toward bullish momentum.

Structure & Formations

The 24-hour candlestick data reveals a strong upward bias with the price forming a bullish engulfing pattern on the last major bearish candle, followed by a strong rally. A key support level appears to have formed near $31.50, which was tested multiple times, but buyers stepped in aggressively. The recent high of $34.63 may now act as a dynamic resistance, with a 61.8% Fibonacci retracement of the key swing likely near $33.45–$33.60, which was tested and held during the session.

Moving Averages

On the 15-minute chart, COMPUSDT has moved decisively above both the 20 and 50-period moving averages, suggesting near-term bullish bias. While daily moving averages (50/100/200) would provide a more comprehensive trend, the 15-minute crossover suggests the price could continue to test higher levels in the coming sessions, assuming volume and momentum remain supportive.

MACD & RSI

MACD lines show a strong positive divergence with the histogram expanding on the most recent bullish waves. The RSI has moved into overbought territory (above 70), suggesting a possible pullback may be due, although sustained volume and strong candle structures indicate the rally could continue. A close below $33.00 may trigger a retest of the support cluster between $31.80 and $31.60.

Bollinger Bands

Volatility has expanded as price reached the upper Bollinger Band multiple times during the session, with a final close near the top of the band. This expansion indicates increased market participation and could signal a continuation if the price remains above the middle band. However, a breakdown below the lower band would suggest a reversal is in play.

Volume & Turnover

Volume surged significantly during the rally phase, particularly between 16:30–17:00 ET, indicating strong buying pressure. Notional turnover aligned well with the price action, confirming the strength of the move higher. The final candle showed a massive volume spike and a large body, signaling conviction in the upward move.

Fibonacci Retracements

The 24-hour swing from the low of $31.11 to the high of $34.63 provides clear retracement levels for the next 24 hours. The 61.8% level at $33.55–$33.60 is now a critical support-turned-resistance. A break above $34.63 could target the next Fibonacci extension at $35.65–$35.80, while a failure to hold above $33.60 may trigger a retest of the key support near $31.50.

Backtest Hypothesis

The inability to access the RSI data for COMPUSDT limits the ability to run a full backtest for a 14-period RSI-based strategy. However, from the current 24-hour candlestick behavior and the strong RSI divergence observed visually, a backtest using a 14-period RSI with a 70/30 overbought/oversold trigger could potentially validate the momentum seen in recent candles. To proceed, a clean dataset of daily close prices for COMPUSDT would be required, ideally sourced from a reliable exchange like Binance or FTX. Once this is provided, a strategy based on RSI crossover with a volume filter could be developed to assess its effectiveness on historical data.