Bulls and Bears Are Locked in a Scuffle on Compound (COMPUSD)
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Compound Analysis – Price Keeps Ranging as Bulls and Bears Tussle for Dominance
Bulls and bears are locked in a scuffle for dominance of the market. This has confined Compound to a ranging market movement. Price has not fallen below the $290 support level, which it reached 16 days ago. Neither has price been able to climb above the last significant level it broke through on its way down, the $340 resistance level. The coin can be seen on the daily chart reacting vigorously within this zone.
Significant Compound Levels
Resistance Levels: $340, $390
Support Levels: $290, $220
Compound can be seen as tending to go into consolidation movement. This has occurred several times since the beginning of the year. The coin has thus remained in a consolidation zone since dropping from its all-time high on the 21st of May. It is no surprise then that, after testing the $530 resistance, the market eventually dropped, sliding down a descending channel till it got to $290.
Price is now locked in a ranging movement as bulls and bears fight out for market dominance. Bulls currently have the upper hand because the market has dropped to the lowest level in the consolidation zone, at the $290 support. The lower border of the Bollinger Band is forming an extra layer to push the price higher. Hence, it will take a strong shift of momentum to the bears to plunge the price below this level.
Market Expectations
Despite the coin still ranging between $340 and $290, the RSI (Relative Strength Index) already gives a bias to the bulls on the 4hour time frame. This is shown by the RSI signal line climbing up to the buying half above the 50 mark. Also, the middle line of the Bollinger Band has retained the 4-hour candlesticks above it, to aid its break out.
Compound is expected to soon push up out of the consolidation zone towards $390.
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