$COMP is Waiting for a Major Drop โ Is a Reversal Incoming? ๐ค
After a strong rally, Compound (COMP) is flashing warning signs of an impending correction.
๐ป Key Observations:
โ Overbought Zone: Recent price action has pushed COMP into overbought territory, increasing the likelihood of a pullback.
โ Strong Resistance: The price is struggling near the $50 resistance levelโa rejection here could trigger a sharp decline.
โ Volume Weakness: Despite the pump, buying momentum is fading, signaling possible exhaustion from bulls.
๐ Whatโs Next?
If $COMP fails to break above $50, we could see a retracement to $42-$40 levels in the short term. A breakdown below that could open the door for a more deeper correction.
Traders should watch these levels closely and manage risk accordingly!
