Compound (COMPUSD) To Recover From Set-Back to Bullish Impulse
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COMPUSD Key Zones
Resistance Zones: 560.00, 690.00, 910.00
Support Zones: 210.00, 330.00, 430.00
Compound has been on a general upside trend after a long period of relative market quietness. The 430.00 key level has been very instrumental in keeping the market afloat. From the 4th of February 2020 when price broke up to it as a support, it has managed to keep the market afloat except on just two occasions, where the 330.00 acted as an able back up to send the price back up.
On the 23rd of April 2021, the price rallied and shot up for a higher level where it almost got to the 910.00 resistance zone. It fell back to the 690.00 support and rallied to retest the 910.00 zone to form a double top pattern. Following the double top market pattern, price began a swift descent below the neckline and fell rapidly with very high market volatility beyond even the 430.00 support, it took the 330.00 support level to halt the plunge of price and just like it had done before to send the coin back to the 430.00 support. This can be seen in the long wicks shown by the candles on the 19th, 20th, and 21st of May 2021.
Compound Market Anticipation
Both the 430.00 and the 330.00 key levels have been extremely effective in working together to keep the price from slumping back to a quiet state.
Price is expected to eventually cross back above the 89MA (Moving Average) to return to its uptrend movement. Compound has been at its highest level of volatility for the past four days and this is expected to help the price recover back to the uptrend movement.
On the 4-hours chart, the descent of the price is very visible with various candles having crossed below the 89MA. Volatility is also seen to be dwindling, but at 56.81, it is still at a very high level compared to the times of market quietness.
The market is expected to bounce up from the 430.00 support zone and reach the 560.00 resistance.
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