Compound (COMPUSD) Restarts Bullish Agenda; Faces Opposition at $348
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COMPUSD Analysis – Price Restarts Bullish Movement After a Breakout
COMPUSD restarts bullish agenda after breaking out of a symmetric triangle formation. The symmetric triangle pattern has lasted for several weeks, starting on the 26th of September. This was a formation that buyers have used to overturn the market. The market was able to absorb the bearish pressure imposed on it as the price restarts its bullish agenda. However, COMPUSD must first navigate through a major opposition at $385.
COMPUSD Key Zones
Resistance Zones: $510, $450, $385
Support Zones: $300, $220, $120
The market began a bullish agenda on the 27th of June at the $220 support level. Price pushed up with momentum but was resisted by the $385 zone. A pullback to $300, however, allowed the coin to spring past the zone. Thereafter, Compound rose to $510. The $510 level is a far stronger resistance level that dumps the market immediately, even below $385. However, bullish momentum remained, and the price restarts its upward movement to reach $510.
After several tests of the $510 resistance level, buyers weakened and slumped. The $385 level tried to give the market some respite, which lasted about 12 days, but the market slumped further to $300. The bulls revived at this level and forged the market into a symmetric triangle pattern as COMPUSD restarts its bullish agenda. Price finally breaks out on the 31st of October but faces stiff opposition in the $385 zone.
Market Prospects
The market is now suffering rejection after falling back through the resistance zone at $385. Drawing a Fibonacci level on the chart, the price can be seen to have some hesitation at 50% and an attempt to rally from here met further rejection and COMPUSD has now dropped further. The 61.80% assumes a safe landing and reversal level for the market, especially as the Stochastic Oscillator has also plunged deep into the oversold region, signaling an imminent price reversal.
A reversal at the 61.80% Fibonacci level is expected to break through the resistance zone and go to $450.
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