Compound (COMPUSD) Breaks Below Its Consolidation Zone
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COMPUSD Analysis – Price Breaks Below $300 to Drop Out of Its Ranging Phrase
COMPUSD breaks below the $300 significant level, thus discontinuing its ranging phase. Though a predominantly silent market, Compound has been agitating to break out of its current ranging phase. It initially threw several blows towards the lower border level at $300 without success. Then it rose to strike the upper border, but the price was rejected as well. More punches were thrown towards the lower border till it gave way on the 22nd of November.
COMPUSD Significant Levels
Resistance Levels: $510, $450
Support Levels: $300, $250
The coin took off after hitting rock bottom at $220. The price surged upwards till it was rejected at $510. This led to a wobbly drop that ended up just above $300. From there, the market rallied back above the strong key zone at $385, which helped to push it further up to $510 again. The resistance level maintained its imperviousness as the market repeatedly pushed against it. Eventually, the market dropped below $385 again, entering a consolidation phase.
The market was confined between the significant levels of $370 and $300. From the ranging phase, it can be seen that the market had more bearish tendencies as it repeatedly crashed to the $300 support level. The Elders Force Index (EFI) shows the market reacting around the zero level but is more skewed to the negative value. Eventually, the price breaks below the lower consolidation border.
Market Anticipation
On the 4-hour chart, the coin bounced off a $250 significant level to recover back into the ranging zone, but the coin was rejected below $300. As a result, the price has dropped again, back to $250. The Parabolic SAR (Stop and Reverse) can be seen above the 4-hour candles to confirm the price descent. It is expected that the market will rise again for another test at the $300 level.
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