Compound (COMPUSD) Fails to Rally Upward at the 61.80% Fibonacci Level
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Compound Analysis – Price Rally Fails at a Key Fibonacci Level
Compound fails to rally upward despite being in consonance with the 61.80% Fibonacci level. The coin initially fails after being rejected at $385. The bulls were still strong in upholding the market, but then a pullback was intended to break through the resistance level. Therefore, price dropped with the bulls finding a rally point at the 61.80% key level. Compound holds at this level for a week and then unexpectedly slumps.
Compound Important Levels
Resistance Levels: $370, $385
Support Levels: $300, $220
The influence of the bears on Compound from the early days of September has been very pronounced. The market was first pulled down from the $510 resistance level after the coin fails to push through the price level. The market crashes to the $385 level where bulls tried to rally upward, but firm resistance at $450 led to a failed ambition for buyers, and the market crashed further to the $300 support level.
At the $300 critical level, buyers put out a strong front to oppose bearish activities. This led to a tapering movement of the market sideways in a triangle. After that, the coin broke out and surged to $385 without any fuss. However, bearish power comes into play again and the price drops for a pullback. This was to enable the market to break upward again and past $385, but the price fails and slumps. This sees a huge drop in the EFI (Elders Force Index) indicator to a negative value.
Market Anticipation
The 4-hour chart shows the market approaching the $300 support level, despite bullish resistance. The EFI power line is well below the negative value, showing bearish market dominance. The Parabolic SAR (Stop and Reverse) shows the bears aren’t letting down anytime soon. Price is therefore anticipated to fall to $300 before another rally.
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