Crypto.com price crash triggers a bullish setup, CRO likely to rally 16%
|- Crypto.com price shed 18% in under three days, setting up a triple bottom at $0.481.
- This technical formation could trigger CRO to rally by 16% to $0.589.
- A four-hour candlestick close below $0.481 will invalidate the said setup and potentially catalyze a further drop.
Crypto.com price has been on a downtrend since November 24, 2021, when it set up a new all-time high. However, CRO found respite as it bounced off a crucial support level four times in less than two months, indicating the vital nature of this level. The recent downswing has pushed CRO back to this area, revealing a triple bottom setup in play.
Crypto.com price eyes a relief bounce
Crypto.com price dropped roughly 18% in the last three days and set up a swing low coinciding with the support level at $0.481. Interestingly, CRO has tagged this level two more times since December 4.
These three retests have given rise to a triple bottom pattern, which suggests that an uptrend is likely to begin soon. Assuming the bulls band together, Crypto.com price will head back to $0.589 and collect the liquidity resting above it. This run-up would constitute a 16% surge and is likely where the uptrend will end.
However, if the buying pressure continues to increase, Crypto.com price could revisit the $0.662 resistance barrier, bringing the rally to 30% from the current position - $0.505.
CRO/USDT 4-hour chart
While things are looking up for Crypto.com price, a failure to see an increased buying activity could prove fatal. If there is a lack of interest from the bulls, there is a high chance, CRO will slice through the $0.481 support floor.
This development will create a lower low, invalidating the bullish thesis and indicating that a further descent to the immediate support level at $0.424 is likely.
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