Crypto.com finds key support as CRO eyes a bullish retaliation to $0.55
|- Crypto.com price moved as far as the 61.8% Fibonacci expansion at $0.44 and immediately bounced.
- Extreme oversold conditions are present in the oscillators.
- Downside risks remain as upside potential may be limited.
Crypto.com price experiences a strong bounce after hitting a critical Fibonacci expansion zone. However, whether the bounce will yield a resumption of the prior uptrend is not yet known. Critical resistance levels are to be tested before any confirmation of a new uptrend can occur.
Crypto.com price positioned for a 20% rise to the $0.55 value area
Crypto.com price has experienced significant and persistent selling pressure over the past month. Since hitting a new all-time on November 27, 2021, CRO has drifted lower and lower, hitting new two-month lows at $0.44. That’s a loss of over 63% from the all-time high.
All three oscillators indicate a significant bounce is coming up. The Relative Strength Index recently shifted into bear market conditions after losing 40 as support. It has, however, found support just above the first oversold level in a bear market (30).
The Composite Index is not displaying any bullish divergence, but it has printed a new 2022 low and the lowest low since April 26, 2021. Finally, the Optex Bands oscillator has drifted into extreme oversold conditions. Combining the new multi-month lows in the Composite Index with new extreme oversold levels in the Optex Bands provides significant strength to a bullish bias in the short term.
Traders should expect a return to the critical $0.50 price level. Bulls may be halted at this level as it contains the 50% Fibonacci retracement and the daily Tenkan-Sen. A move above $0.50 would put Crypto.com price on the road to the next resistance level in the Ichimoku system, the Kijun-Sen, at $0.55.
CRO/USD Daily Ichimoku Chart
Crypto.com price bulls can be confident that a prolonged trend is likely to continue if CRO closes above the 38.2% Fibonacci retracement at $0.61. If that occurs, that puts Crypto.com price above the Tenkan-Sen and Kijun-Sen, but most importantly, the Chikou Span would be above the candlesticks and in open space.
A daily close below the 61.8% Fibonacci expansion at $0.44 would invalidate the current bullish outlook.
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