Compound (COMPUSD) Keeps Trading to the Downside Under Pressure
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Market Analysis – Compound Keeps Trading Downward as Sellers Exert Dominance
Compound keeps trading to the downside of the market as the sellers continually exert dominance in the market. Compound has since fallen as much as 46% since it began plummeting on the 6th of September from the $530 resistance level. After a brief consolidation between $450 and $390, price dropped and the coin is currently reacting around the $340 significant level.
Compound Key Levels
Resistance Levels: $390, $450, $530
Support Levels: $340, $290, $220
Compound has been working its way upward since dropping to a low of $220. Price embarked on a bullish run that fired it up to the $530 price level. The coin was, however, rejected at this level, and subsequently, price has been fluctuating around the $450 key level. The $390 level remains a strong support level for the market, while the $530 resistance confines the market from above.
At the third time of testing the $530 resistance level on the 6th of September, the bulls seized the market and pushed it below $450. Eventually, price fell below $390 and it keeps trading to the downside. Compound is now at the last support level that is keeping it from falling to rock bottom at $220. Price keeps trading at the lower border of the Envelope to reflect the pressure from the sellers.
Market Prospects
The market can be seen undulating downward along a channel. Price keeps trading around the middle line of the Envelope indicator as it falls. On the 4-hour chart, the Stochastic Oscillator has risen into the overbought zone, ready to begin a downtrend. This coincides with the market rising to meet the confluence of the upper border of the descending channel and the $340 resistance. Compound is therefore set for a fall that will plunge the market below the current support at $290 toward the $220 price level.
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