Compound (COMPUSD) Fails to Build on Its Rally From $180
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Compound Analysis – Price Fails to Build Past the $250 Resistance Level
Compound fails to build on its soft rally from the $180 support level as it bows to rejection at $250. It was thought that the ability of the coin to stop its fall at the $180 support level would translate to an immediate reversal back upwards. A soft rally started at the same level and the buyers began strengthening. An encouraging sign was that it violated the $220 price line. However, it all comes to nothing as Compound fails to get past $250.
Compound Key Levels
Resistance Levels: $250, $370
Support Levels: $180, $120
The sellers had seized control of the market after a protracted session of consolidation that lasted for over two months. Even though bulls took the first initiative to drag the market upwards, the price fails to violate the $370 strong key level. Immediately after, sellers took control of the market before the bulls could recover. Therefore, the price embarked on a free fall, breaking past all key levels till the slump was stopped at $180.
Even though buyers recovered at $180, sellers retain market strength and this was shown in how they caused much sluggishness in the rise of the market from the support level. They continued influencing the coin from the background. The EFI (Elders Force Index) powerline remains negative till buyers pushed past the $220 price line. But it won’t be for long as Compound fails to build on its rally.
Market Prospects
The price is dropping rapidly on the 4-hour chart after failing to push above the $250 resistance level. In so doing, the coin has traded to the downside of the middle line of the Envelope indicator, such that the midline is now resisting the market also. There is a definite current downfall for Compound. Buyers can be optimistic, though, that bears will tire out back at the $180 support so that they can try to rebuild the market again.
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