Crypto.com token survives flash crash, CRO eyes 22% recovery rally
|- Crypto.com token has bounced off the $0.355 support level for the third time, hinting at the formation of a bottom reversal rally.
- A bounce off a support confluence is likely to propel CRO 22% higher to $0.436.
- A daily candlestick close below $0.316 will invalidate the bullish thesis.
Crypto.com token is bouncing off a crucial support level that will absorb the selling pressure and hints at a trend reversal. Investors can, therefore, expect CRO to trigger a quick recovery rally.
Crypto.com token eyes gains
Crypto.com token dropped roughly 10% since February 23 and is currently piercing the three-day demand zone, extending from $0.316 to $0.400. Interestingly, this demand zone harbors a support level at $0.355, which CRO has tested thrice over the past three months or so, giving rise to a triple bottom setup.
This technical formation forecasts a trend reversal, suggesting that CRO is due for a quick run-up. The resulting uptrend will likely propel the Crypto.com token by 22% to retest the $0.436 resistance barrier.
This level is where the uptrend will be capped, a move beyond this level seems unlikely since the move is a relief rally. Interested investors can position themselves to capitalize on this move and book profits at $0.436.
CRO/USDT 1-day chart
While this development sounds optimistic, it is due to the formation of a triple bottom setup. However, if Bitcoin price continues to react negatively to the ongoing war between Russia and Ukraine, there is a good chance Crypto.com token will feel the effects as well.
In such a case, a daily candlestick close below $0.316 will invalidate the bullish thesis and open the path for further losses. A potential outlook would include Crypto.com token crashing 28% to revisit the $0.224 support level.
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