Crypto.com Coin bounces off support and holds 36% of profit once global markets kick-off
|- Crypto.com Coin finds the floor where bulls and investors pick up the cryptocurrency.
- CRO price sees bears booking gains, contributing to buy-side volume pickup.
- Expect a return towards $0.60 once CRO price breaks above the red descending trend line.
Crypto.com Coin (CRO) is still fresh since it opened on November 3 and has been trading sharply higher since, with a similar pullback after the Christmas rally. Bulls did not wait for the complete pairing back towards the opening price but instead used a technical level at $0.44 with the S1 monthly support level just below as an entry point for a slow grind higher. Expect a break of the red trend line to see demand blow up and a quick rebound towards $0.60, with three elements capping any further uptrend for now.
CRO price action looks promising to rally back towards $0.60
Cyrpto.com Coin has not yet developed many broad and long-term elements to build any projections on, but a Fibonacci retracement and a simple triangle already provide some excellent levels to make a solid trade plan from here on. As CRO price has rebounded off the black supporting level at $0.44, an entry for a long trade makes more sense with the S1 monthly support and the 0.76% Fibonacci level as a double belt of support to defend the stop loss. With the Relative Strength Index (RS) just inches away from oversold, buyers are seeing sellers revert to the buy-side as well as book gains, causing an uptick and providing more incentive for bulls to get in.
CRO price action will quickly face the red descending trend line as the first cap, which should not be a problem once global markets shift back into gear and book their first steady rally of the year. A break above will see more investors step into the price action and price valuation quickly spike back towards $0.60, with the 55-day Simple Moving Average (SMA), the monthly Pivot and the 50% Fibonacci level as a triple cap which will trigger profit-taking amongst a large portion of bulls. Another push further will need to see all the stars align and stock markets back on track to new all-time highs. In that situation the cryptocurrency space could enjoy several tailwinds, leading CRO to surge towards the 38.2% Fibonacci level at or around $0.70.
CRO/USD daily chart
If the route for global markets gets sticky and elevated inflation levels lead to more rate hikes from the FED, expect this to drag on CRO price action. Investors will get even more worried than they are already, and more funds will be extracted from the cryptocurrency space, mounting to more losses. In such a scenario, CRO price will likely enter the grey area of the Fibonacci retracement with only the monthly S2 support level at $0.30 in the way before hitting the opening price at $0.25. Expect the RSI to trade firmly in the oversold area by then, which should see some quick reversals to the upside as investors try to enter CRO price action at a discount near its original opening price.
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