Compound (COMPUSD) Is Approaching Its All-Time Low Level After Dropping to $120
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Compound Analysis – The Price Is Approaching Its All-Time Low of $62
Compound is approaching its $62 all-time low level after it dropped to $120. The result of a 6-week long consolidation is that the coin still succumbs to bearish pressure and plunges to the next lower significant level at $120. This is in conformation to a falling wedge pattern that has engulfed the market since the third quarter of last year. Having dropped to $120, the market is taking a breather as the coin is approaching its all-time low.
Compound Important Levels
Resistance Levels: $220, $250, $300
Support Levels: $62, $120, $180
A falling wedge pattern seems to have engulfed the market since the third quarter of last year. The price has been moving in consonance with the wedge pattern, such that brief periods of consolidation precede a plunge to the next lower level. The result is that from the 5th of September 2021 to the 28th of January 2022, the price has dropped an incredible 77% as the market lands on $120.
Currently, at $120, the market is waiting for its next line of action. Bearish forces still abide in the market, as shown by the dominant MA period 50 (Moving Average). This may push the coin to its lowest level ever, at $62. The MACD (Moving Average Convergence Divergence) lines are well below the zero point as they are converging even more downward. This shows dominant market bearishness.
Market Prospects
The 4-hour chart shows that the market has found a footing at $120, where it is taking a breather. Despite the dominant bearishness, underneath, bullish activity can be observed to be taking place as the price rests atop the $120 price level. This has made the MACD switch to bullish histogram bars even as the MACD lines are approaching the zero level, albeit from below it. The market is expected to drop beyond this level, approaching the $62 price level.
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