Compound (COMPUSD) Drops Below the Support Level After Rejection at $505.00
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Price Analysis – The Market Drops After COMPUSD Breaks Below the Consolidation Zone
COMPUSD drops below the support level at $440.00 after the coin fails to keep up with consolidation demands. The upward movement of Compound is such that it hasn’t been impressive. After crashing to a low of $200.00, the coin began pumping upwards. It immediately reached a price level of around $505.00, which is just a level higher than its immediate past high. From there, the market drops down to $310.00, which is also just a level higher than its immediate past low.
COMPUSD Significant Levels
Resistance Levels: $440.00, $505.00
Support Levels: $310.00, $200.00
From $310.00, the market rallied up again, receiving support at $382.00 to reach the $505.00 key level again. The resistance, however, remains unyielding. This forced the market into a ranging movement between the $505.00 resistance level and the $440.00 support level. Meanwhile, the chart structure of the coin has ensured that COMPUSD is tapering upwards on an uptrend line.
After several days of trying to break the resistance, bears have stepped in instead to plunge the market. The coin has now dropped below the uptrend line and the $440.00 support level, thereby falling out of consolidation. The MA period 12 has now moved above the daily candlesticks to signify a definite bearish market movement. The force line of the EFI (Elders Force Index) has now slid below into negative values. This indicates a drop in the number of buyers.
Market Expectations
Currently, the market is trading around $418.00 after dropping below the $440.00 support. Price is seen gradually climbing upwards for a retest at the $440.00 key level and possibly reclaim its position above it. The MA period 12 on the 4-hour chart has moved below the 4-hour candlesticks to act as support for the market. The EFI force line can also be seen making a recovery back to the zero mark from its plunge into negative values.
COMPUSD is expected to rise back to $440.00 and then break through it to keep going up. But if bears sustain their pressure, the coin will drop again and may even drop below $382.00.
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