Compound (COMPUSD) Plunges Below $220 to Drop to an 11-Month Low
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Compound Analysis – Price Plunges to an 11-Month Low
Compound plunges to an 11month low as it drops below the $220 support level. The failure of the market to violate the $370 significant level sparked a plunge in the price. The $300, which had been a major support level up till that point in time, gave way without much resistance. The coin, however, found opposition at $250, to which it drew back for a retest at $300 before it broke through. The $220 price level was broken with ease also.
Compound Significant Levels
Resistance Levels: $385, $450, $510
Support Levels: $180, $250, $300
The highest level the market has reached this year is the notoriously impenetrable $510 critical resistance level. The coin tested it several times, but to no avail, as it limited the market from pushing well beyond it. Thereafter, weariness caught hold of the buyers and they began to let go of the market. Gradually, the coin crashed against the support at $385 and eventually dropped below it.
The momentum in the market helps it maintain a hold above the lower level of $300. This continues for two months, from September to November. At this point, buyers thought they had accumulated enough momentum to push higher. But their trials led to a market drop, even defying the support at $300 and furthermore at $250 and $220. The sharp plunge in the market sees it trading very close to the lower border of the Envelope indicator.
Market Prospects
The market is showing a likelihood of reversing from here, as can be seen on the 4-hours chart. The RSI (Relative Strength Index) indicator, which was hitherto undulating in the bearish region of its chart, has broken through the middle line, though it has dropped below it again. The $180 level is very critical as it could make or break the market.
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