Compound (COMPUSD) Consolidates Above Weekly Support; Price Is Set to Break Upward?
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Market Analysis – COMPUSD May Break Upwards After It Consolidates Above Weekly Support
COMPUSD consolidates above the $440.00 weekly support as it aims to go higher. The market has been on a general uptrend since the 22nd of June 2021. The coin has been bouncing above the uptrend line, with the $505.00 key level acting as stern support to constrain the market from moving upwards. It has previously knocked the market back once, on the 6th of July 2021. Compound has now climbed the uptrend to confront the level again.
COMPUSD Significant Levels
Resistance Levels: $505.00, $564.00, $650.00
Support Levels: $440.00, $382.00, $310.00
The coin has had to consolidate once on its journey uptrend. This was from the 22nd of July 2021 to the 4th of August 2021. The essence of the consolidation was to break above the strong $440.00 weekly resistance, which was the case eventually. The market now confronts an even stronger key level of $550.00, which has acted as a major resistance to prevent the upwards movement in price since the May 19 price slump.
COMPUSD has therefore begun a consolidation phase to break above the $505.00 resistance. The coin, two days ago, almost slumped below the consolidation zone. It took the uptrend line to keep the price up. The Elders Force Index signifies that that slip in price cost the coin some momentum. The EFI force line is working its way back upwards towards the zero level. The RSI (Relative Strength Index), however, indicates that bulls still have the upper hand in the market because its signal line has been above the zero line even before the first consolidation began.
Market Anticipation
The coin has bounced up from the uptrend line with much vigor and is now approaching the $505.00 key level again. Despite the upward movement of the 4-hour candles, the RSI signal line has slightly bent downwards to the 56 mark. The EFI, however, has its power line above the zero line. This both point to the fact that bulls still have the upper hand currently in the market, but buyers may be dwindling at this point, and this may render the coin powerless to break above $550.00 at this time. Price is likely to continue in a range between $550.00 and $440.00.
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