Market Overview: Compound/Tether (COMPUSDT) on 2025-12-09

Summary
• Price formed a bullish engulfing pattern near $31.05–31.11 with volume confirmation.
• RSI and MACD signaled oversold conditions, suggesting potential near-term rebound.
• Volatility expanded after 16:00 ET with a high of $32.43 and close at $32.28.
• Bollinger Bands widened, reflecting increasing short-term uncertainty.
• Fibonacci retracement at 61.8% (~$31.80) acted as a key support and trigger for upward movement.

At 12:00 ET–1 on 2025-12-09, Compound/Tether (COMPUSDT) opened at $31.26, reached a high of $32.43, and closed at $32.28 with a low of $30.88. Total volume was 95,584.568, and notional turnover amounted to $2,982,044.08 over 24 hours.

Structure & Formations

Price action showed a strong bullish reversal around $31.05–31.11 with a confirmed engulfing pattern. Key support levels held at $31.05 and $30.93, while resistance appeared at $31.58 and $32.10. A doji formed at $31.56–31.65, signaling indecision after a sharp rebound.

Moving Averages and Momentum

The 5-minute chart showed price above the 20-period MA, suggesting upward bias. The daily 50/200 MA crossover remains bullish. RSI dipped below 30, indicating oversold conditions, with MACD showing a narrowing bearish divergence that may reverse upward.

Volatility and Bollinger Bands

Bollinger Bands widened in the afternoon as volatility spiked, with price touching the upper band at $32.43. The contraction earlier in the session foreshadowed the breakout. Price remained within the bands, indicating a structured move without extreme volatility.

Volume and Turnover Divergence

Volume increased sharply after 16:00 ET, confirming the $32.28 close. Turnover surged in the last candle, aligning with the price breakout. No major volume divergence was observed during the pullback from $32.43.

Short-Term Outlook and Risk

The formation of a bullish engulfing pattern and MACD divergence suggest potential for further upward movement, with a target near $32.50. However, a pullback to the 61.8% Fibonacci level at $31.80 could test buying strength. Investors should remain cautious of a potential pullback or consolidation as the market digests the recent momentum.