Crypto.com Coin bound for bearish breakout to $0.31
|- Crypto.com Coin is set to finish a pennant with a possible bearish outcome.
- CRO price will look for support and shed around 20% value in the process.
- Expect the monthly S2 support and $0.31 historical support level to attract buyers.
Crypto.com Coins (CRO) has dark clouds forming on its horizon as CRO price development is set for a bearish breakout on the pennant it is forming at the moment. As the price will nosedive, expect bears to have an easy ride before running into bulls that will start to buy into CRO price action. With that, CRO will lose around 20% of its value and will hit $0.31 before being halted by broad buying from bulls and investors.
CRO price is awaiting bulls for a pick-up
Crypto.com Coin is entering its fourth consecutive day in the consolidation of the pennant. As price action looks set to break the pennant, a lower stage is set as the outcome of the pennant. Bears already have their hand in the price action with the rejection of CRO price at the monthly S1 support level at $0.43. Not only the S1 but the 76.4% Fibonacci level and a historical level all fall in line around that area, making it an adamant level to punch through.
CRO price is thus delivered at the mercy of the bears and will dip towards $0.35, gearing up for a possible bounce on the red descending trend line. But as global sentiment could weigh today on the risk appetite, a break below the red descending trend line could easily be triggered by one or two headwinds as equities trade in the red. That would trigger a second break to the downside and touch base at $0.31 as that level holds historical support and the S2 support level.
CRO/USD daily chart
Any pennant can always break either way. This is no different, as the Relative Strength Index (RSI) is still close to the oversold area and offers more room for any upside potential. The first level to be touched after the breakout is $0.43 with the 76.4% Fibonacci level, the monthly S1 and a historical pivot that was the initial entry point of bears this week. Should US markets see a significant shift toward risk with indices firmly in the green, expect a possible break and pop with the tone set for next week towards $0.50.
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