Compound (COMPUSD) seeks to break $507 to continue uptrend movement
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Market Analysis – COMPUSD seeks a higher price level above $507
COMPUSD seeks to break the $507 price level to continue its uptrend movement. The uptrend movement began immediately after the price lifted from the $210 support level. The coin began cranking upward utilizing an ascending channel. Compound surged up to the upper half of the channel, but rejection at the upper border pushed it down and confined it to the lower half of the ascending channel.
COMPUSD Key Levels
Resistance Levels: $507, $590
Support Levels: $385, $304
The coin kept cranking in the lower half of the ascending channel till it tried to break upward on the 7th of August 2021. It met strong rejection at $507 and using a tweezer top candlestick pattern, it plunged back into the lower half of the channel. More rejections occurred at the midline of the ascending channel. The market dropped to the lower border, where it has bounced back, and now seeks to test the middle line to move to the upper half again.
In climbing up, the coin will first have to negotiate the $507 resistance level before it tries to break above the middle line. A successful shift to the upper half will also signify an increase in momentum. All indications are in place to achieve that. COMPUSD has bounced off the lower border and the MA period 20 has moved under the daily candles to act as support. The Relative Strength Index is now at 57 and pointing upward to also signify increasing momentum.
Market Expectations
Like on the daily chart, the MA (Moving Average) period 20 is acting as support below the 4-hour candles to keep it up. The RSI indicator has its signal line at the 63 mark and is upward abounding. These all point to a favorable situation for the bulls to press on with their bullish momentum.
Compound is expected to break past $507 and continue to $590.
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