📉 COMP's Plummet: The $23 Abyss Awaits? 🤔

COMP, perched precariously on the chart, threatens to nosedive into the abyssal depths of the market.
Sellers, with the enthusiasm of a bear at a honey shop, are gleefully offloading COMP as if it were yesterday’s news.

In the realm of Internet Computer [COMP], the bears have been on a relentless rampage, selling off the asset with a fervor that would make a Black Friday sale seem tame. Their efforts have led to a delightful decline of 12.31% and a charming 24.92% over the past week and month, respectively.

AMBCrypto’s keen eye has spied COMP teetering on the edge of a cliff, supported only by the flimsiest of threads. Should this thread snap, a grand tumble into the depths of despair may ensue. And wouldn’t you know it, the market is currently a festival of selling.

COMP, currently wallowing at the bottom of its consolidation channel since the days of yore (or July 2023, if you prefer), faces a daunting challenge. If it should fail to cling to its current support, it will embark on the final, thrilling descent of the bearish flag pattern. A pattern that’s as predictable as the plot of a Russian novel: a sharp decline, followed by a period of consolidation, and then a continuation of the downward spiral.

Below the breach of this support lies the next level at $23.27, a target so tantalizingly close to a 50% haircut. Should this support crumble like a cake at a tea party, COMP may find itself trading in the shadowy realm below $20.

In the derivatives market, the tea leaves and crystal balls all point to a high likelihood of COMP’s continued freefall, much to the delight of sellers everywhere.

One such ominous sign is the declining open interest, which has shrunk by 1.83% to a mere $18.08 million in the past 24 hours. Accompanying this decline is a Taker Buy Sell Ratio that reads like a sad novel at 0.9242. When the ratio dips below 1, it’s a sign that sellers are the life of the party, outnumbering buyers with their eagerness to unload.

The Funding Rate, that fickle indicator of market sentiment, was as negative as a grumpy old man at -0.0065. A negative reading is as clear a sign of a downtrend as a bear wearing a “Sell Now” sign.

If the selling pressure continues to build like a snowball rolling down a hill, COMP could very well shatter its current support level and continue its journey southward, with the $23 target in its sights.

In the spot market, traders have finally joined the selling bandwagon, casting aside their earlier attempts to accumulate COMP in modest quantities. The daily exchange netflow is positive, which in this context, is as positive as a visit from your in-laws.

About $71,000 worth of COMP has been tossed into the market like yesterday’s fish. If this trend persists, and the bearish sentiment in the derivatives market continues to party hard, COMP may just nosedive as predicted. What a cliffhanger!

2025-03-17 03:06

📉 COMP’s Plummet: The $23 Abyss Awaits? 🤔

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