- The composite coin price rose 40% a few days ago and took a small setback.
- Compound coin prizes have formed a cup-like pattern that can later become a cup and handle pattern if the winning booking continues.
The compound coin will create a possible pattern for cups and handles in the coming days. The coin may remain consolidated or it may decline a little. The drop could fall to $ 200 or even $ 180. The market cap and 4-hour volume are $ 963,329,076 and $ 44,035,142, respectively.
A poor profit booking: possible cup and handle pattern
The compound coin recently posted a profit posting that slumped the coin by 15%. The cause of the profit posting was a resistance of $ 260 formed on September 1, 2021. Prices are currently above 10 EMA ($ 215), 20 EMA ($ 205) and 50 EMA ($ 180), indicating that the coin is in an uptrend.
The VWAP acts as an intraday resistance at $ 227 against the LTP of $ 226.
The Bollinger Band is wide open and the lower band follows the upper band, suggesting little selling pressure versus buying pressure. The upper band (resistance) is at $ 260 while the median (support) and lower band (support) are at $ 215 and $ 175, respectively.
RSI moves in a narrow channel between 44 and 66 levels. One can trade the coin according to support and resistance. A break in one of the sides can push the coin in that direction.
MACD (8,21,5) is in positive territory and the signal line and the slow line have crossed several times indicating significant moves over the intraday period. The MACD lines are in 16-17 zones, indicating that the coin needs a breather.
The ADX line is at 25 and DI + and DI- are at 21.3 and 12.2. The data taken together suggest that the bull run has weakened. However, the pressure to buy still outweighs the pressure to sell. Such situations often lead to consolidation.
The compound coin tries to break a horizontal resistance at USD 260, resulting in profit gains. If profit booking continues, a cup-and-handle pattern can be created. Given the tiny profit posting in the coin, the coin can drop to $ 200, $ 190, or even $ 180.
Support: $ 180, $ 190, and $ 200
Resistance: $ 260, $ 270, and $ 295.
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