Crypto.com price unfazed as CRO makes another attempt to crack $0.50
|- Crypto.com price continues to struggle against the $0.50 value area.
- Selling pressure on Wednesday and Thursday did not continue as bulls reemerged on Friday.
- Downside risks remain a concern but are limited compared to potential gains.
Crypto.com price faced some strong and persistent selling pressure on Thursday, with CRO dropping more than 4%. Evidence of how persistent the selling was is that the Thursday low was also the close. Bears looked to extend that loss into the Friday session by dropping CRO another 3% down – but bulls have since recovered that loss, and CRO is now positive.
Crypto.com price shows more buying pressure and upside momentum ahead
Crypto.com price recently triggered a hypothetical long setup identified on March 22, 2022. The entry confirmed a Bear Trap pattern in Point and Figure and simultaneously converted the $0.01/3-box reversal Point and Figure chart into a bull market. Since then, the first pullback since the bull market conversion has occurred, providing another strong entry opportunity for bulls.
The theoretical long trade setup is a buy stop order at $0.49, a stop loss at $0.45, and a profit target at $0.76. The trade represents a 6.75:1 reward for the risk. The profit target is derived from the vertical profit target method in Point and Figure analysis and displays an implied profit target of over 57% from the entry.
However, profit targets that are excessive and borderline unrealistic often never play out. It is very improbable that the current X-column would move from $0.49 to $0.76. Because of that, a three-box trailing stop would help protect against any profit made post entry.
CRO/USDT $0.01/3-box Reversal Point and Figure Chart
The long trade idea is invalidated if Crypto.com price drops to $0.44 before the entry is triggered. Downside risks going into the weekend should be limited to the $0.43 price level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.