Compound (COMPUSD) Is Mounting Downward Pressure on a Significant Level
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Compound Analysis – The Market Is Mounting Downward Pressure on the $120 Critical Zone
Compound is mounting downward pressure on the $120 critical zone. Price slumped to this zone on the 20th of January and has been pounding against it under the influence of the sellers. The coin can be seen slightly rising and crashing down to the critical zone. This has been ongoing for the past 27days. The market is set to decide its direction soon after reaching the edge of its descending wedge.
Compound Key Zones
Supply Zones: $250, $370, $510
Demand Zones: $62, $120, $180
COMPUSD has been cranking through a falling wedge structure since September 6th of last year. During the slump in price, there was a significant consolidation zone between $370 and $300, at which the market attempted to reverse. But the coin kept mounting pressure on the lower zone. This phase lasted from the 20th of September to the 20th of November. The outcome of the struggle was a further price drop.
After that, COMPUSD quickly broke through the following critical zones till it got to $180. The same consolidation scenario played out with $250 as resistance. After mounting much pressure, the price drops again to $120. The coin has been held up at this level for up to a month, and the MACD (Moving Average Convergence Divergence) suggests a break of the down trend in the long term as it crosses upward from below the zero level.
Market Expectations
The candles have reached the edge of the dipping wedge structure, and the price is set to decide its direction. The 4-hour chart shows Compound tapering off with the edge of the wedge structure and mounting pressure on the $120 critical zone. Currently, the Parabolic SAR (Stop and Reverse) has aligned dots above the candles, which signals a move in the downward direction. If this happens, $62 will be the next destination.
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