Market Overview for Compound/Tether (COMPUSDT) on 2025-11-08

Summary
• COMPUSDT posted a 24-hour low of $33.17 and closed at $33.55, down from an open of $34.47.
• Volume dipped significantly in the late hours of the session, while turnover peaked earlier.
• A bearish engulfing pattern formed mid-session, followed by a sustained decline.

The 24-hour period for Compound/Tether (COMPUSDT) began with an open of $34.47 on 2025-11-07 at 12:00 ET and peaked at $35.58 before declining sharply to a low of $33.17. The pair closed at $33.55 on 2025-11-08 at 12:00 ET, reflecting a bearish bias. Total volume traded over the period was 68,304.694, while notional turnover amounted to approximately $2,347,000, based on price-weighted volume.

Key resistance levels emerged near $34.49–$35.09, with notable bearish rejection visible on candlesticks at these levels. Support levels have formed near $34.25–$34.35 and $33.50–$33.75, with a bearish engulfing pattern confirming a shift in sentiment at $34.96. The formation of a large bearish candle on the 15-minute chart indicated increased selling pressure and a potential reversal of the prior upward trend.

The 20-period and 50-period moving averages on the 15-minute chart show a bearish crossover, with price trending below both, reinforcing the downward bias. The 50-period daily moving average is also in bearish alignment. RSI dipped into oversold territory below 30 in the latter part of the session, suggesting a potential short-term bounce may occur. MACD also turned negative, indicating weakening momentum on the long side. Bollinger Bands widened during the sharp decline, highlighting increased volatility, with price now settling closer to the lower band.

Fibonacci retracement levels on the key 15-minute swing from $34.96 to $33.17 show 38.2% at $34.35 and 61.8% at $33.75, with the 61.8% level appearing to offer some near-term support. Over the next 24 hours, a break below $33.55 could trigger further bearish movement toward $33.17, while a retest of $33.75 could offer a potential short-term rebound. Investors should remain cautious due to the strong bearish bias and potential for further downside.

Backtest Hypothesis
The recent bearish engulfing pattern, observed at $34.96, aligns with the backtesting strategy that yielded a 20.8% gain when executed. The pattern accurately captured a turning point, as price moved decisively lower in the days following the formation. The strategy's success is attributed to the strong signal strength of the pattern and the alignment of momentum indicators, such as RSI and MACD, which confirmed the bearish bias. Holding for three days post-pattern allowed for a clean exit on the downward leg. This strategy demonstrates how a well-defined candlestick pattern, supported by technical indicators, can offer actionable short-term trading opportunities in volatile crypto markets.