Compound (COMPUSD) Drops Below Key Support for More Downside Movements
January 21, 2022
#Compound#Crypto#Crypto Analysis#CRYPTOCURRENCY#Daily Chart#Market Expectation#Price Action
COMPUSD Analysis – Price Drops Below $180 for More Downside Movement
COMPUSD drops below the key support level at $180 as it steadies itself for more downside movements. After the price drops further below $250, the key levels were engaged by the market, ranging between $250 and $180. This continues for more than a month into the new year. By the 8th of January, the market is seen to have developed an affinity towards the downside. It, therefore, stays close to the support level for more than a week before it drops below it.
COMPUSD Significant Levels
Resistance Levels: $560, $385, $250
Support Levels: $300, $180, $120
The trend of the market is very clear on the daily chart. The price is seen to struggle at a key level before trading downward. The first instance was when the price rose above the $385 price level. The bulls couldn’t keep up their momentum. The result is a fluctuation above this level, with $510 limiting the market from above. The result is that the price drops to the downside on the 20th of September to the $300 significant level.
At the $300 significant level, the same trend happened again, but this time with a clear affinity towards the support line, and soon the price drops below it to the $180 support. COMPUSD follows the same trend and drops below the $180 support. The market trend forms it into a falling wedge formation, which is a bullish pattern. More downside movement will precede any bullish intervention, though.
On the 4-hour chart, the $180 support level can be seen defending the market, but due to the pressure from the upper border of the wedge formation, the price has dropped below it. COMPUSD is now headed for $120. The Moving Average Convergence Divergence shows a convergence to the downside, indicating bearishness. The Elders Force Index was seen to remain at equilibrium for a while till the price drops from $180. However, the power line shows a sharp turn in the upward direction.
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