Compound (COMPUSD) Will Start Its Ranging Adventure After $532.600 Rejection
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Compound Analysis – Rejection at $532.600 Confirms That COMPUSD Will Start Ranging
Compound will start its ranging movement after it was rejected at the $532.600 key level. The market had broken out of the same $532.600 resistance earlier in the year on the 22nd of April 2021. This was after the price had consolidated for 80 trading days from the 1st of February 2021 to the 22nd day of April. Compound broke out of this resistance and also surmounted the $672.500 key level to reach its all-time high on the 12th of May 2021.
The coin used the $672.500 support as its resting level till it was subdued on the 19th of May 2021. Compound fell directly back below the $532.600 key level. The price failed to rally but was kept afloat by the $326.000 support till the 16th of June 2021, when the price fell further. Market bearishness halted at $206.000 support and the coin started a fresh foray upwards.
There was doubt if Compound will break through the $326.000 resistance due to the low volatility of the market, but the market surprisingly bypassed it with ease. This marked the start of the coin’s bullish movement. However, upon reaching $532.600 resistance, the price faced a stern rejection and fell immediately. COMPUSD is now halfway down to the $326.000 support following its fall.
The Parabolic SAR (Stop and Reverse) indicated there is a reversal in market direction by indicating a dot above the daily candles. This is seconded by the MACD (Moving Average Convergence Divergence) histogram bars which are decreasing continually. Its signal lines are also about crossing each other to face down.
Compound Key Zones
Resistance Zones: $672.500, $532.000
Support Zones: $326.600, $206.000
Market Prospects
The market is gradually falling after being rejected at $532.600. The Parabolic Stop and Reverse is readily showing market bearishness by aligning its several dots above the 4-hour candlesticks. The MACD (Moving Average Convergence Divergence) has its signal lines about to cross and move below the zero level. Its histogram bars are also bearish in outlook.
The market is expected to fall to $326.600 and then rise again to $532.600.
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