Compound (COMPUSD) Edges Out From a Descending Pattern to Avoid a Further Drop
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Compound Analysis – Price Edges Out of Depression to Stay Above $290
Compound edges out of a descending channel to remain afloat. Price has been falling and cranking through a descending channel. This helped the market to fall through many key levels. This continued till it dropped to the $290 support level. Further depression would have seen the coin drop to a 3 month low of $220. However, price edges out of depression to remain afloat.
Compound Critical Zones
Resistance Levels: $340, $390
Support Levels: $290, $220
From a more expansive view, it can be seen that Compound is ranging between the $530 resistance and the $290 support level. This began on the 5th of July when the coin was unable to edge past the $530 resistance level. Since then, price has been cranking between the two levels. It was this trend that Compound was following when price started falling through a descending channel. However, the price edges out at the support level and avoids a further drop.
The Parabolic SAR (Stop and Reverse) indicator has signaled a continuous drop in the market as far back as the 7th of September when price dropped precipitously. The Parabolic SAR aligned multiple points at the top of the 1day candles. The RSI (Relative Strength Index) indicator shows that price has been trading deep in the selling half and a drop was always imminent.
Market Prospects
On the 4-hour chart, the price edges out of the descending channel. This makes the RSI signal line shoot up from below the mid-line above it. The market has, however, been rejected at the $340 resistance level, and Compound is now retracing. This has led to a plunge of the signal line back below the 50 mark. The market is likely to remain in the $340 to $290 range before prices edge out of the zone for further gains.
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