The Compound price has been among the few cryptocurrencies that have consistently traded against the industry’s general trend. However, for the past few trading sessions, its prices look to be moving with the industry, which is currently trending downwards. Today, the Compound is down by a percentage point, extending a streak of four consecutive sessions where it has lost value.
This month, the Compound price has dropped by more than 20 per cent, almost wiping out the 29 per cent price gain from September. Its year-to-date drop has also been very significant, with data showing it has lost three-quarters of its value.
Throughout last month, Compound price traded against the general bearish trend of the industry, which saw it rise by 29 per cent. In my previous analysis of the cryptocurrency, I noted this, and I expected the crypto to continue going up despite the bearish industry forces.
However, in October, the Compound price has traded in tandem with the general cryptocurrency industry trend. The result has been a drop in value of more than 20 per cent. The chart below also shows indicators such as the Williams Alligator giving strong bearish signals.
Looking at the chart below, the current bearish trend has persisted for almost a month. The chart also shows the past four trading sessions having a more aggressive push to the downside. Therefore, it is evident that the current bearish trend is likely long-term.
With the Compound currently trading at $47, I expect the current bearish trend to continue for the next few trading sessions. There is a high likelihood that we might see prices dropping below the $40 price level before the end month.
As the Compound gets more attuned to the general trend of the cryptocurrency industry, which is showing signs of a bearish trend, I expect its prices to continue dropping. However, a trade above the $55 price level will invalidate my bearish trend analysis.
This post was last modified on Oct 21, 2022, 14:18 BST 14:18