Crypto.com uptrend to slow down as CRO approaches resistance cluster at $0.50
|- Crypto.com token has shown considerable bullish momentum, resulting in a sharp recovery.
- The uptrend is likely to pause around 50-day and 100-day SMA confluence at $0.50.
- A breakdown of the 3-day demand zone’s lower limit at $0.316 will trigger a bearish outlook.
Crypto.com token has seen a V-shaped recovery after the January flash crash. This bounce was a result of increased buying pressure and a pivotal support zone. While this development is positive, it cannot continue due to a massive blockade that plagues its path.
Crypto.com is at crossroads
Crypto.com token has risen a total of 35% since its local bottom at $0.324, on January 22. The run-up originated deep within the three-day demand zone extending from $0.316 to $401, adding a tailwind to the bullish momentum. As a result, CRO has rallied 35% to where it currently trades - $0.432.
Going forward, investors can expect the Crypto.com token to rally another 12% before encountering the 50-day and 100-day Simple Moving Average (SMA) confluence at $0.492. Due to the recent crash, the long-term SMA is crossing below the short-term SMA, creating a bearish crossover. This resistance cluster will pose a serious threat to the uptrend which is likely to cap it. Investors willing to enter long can do so at the retest of the $0.401 barrier and book profits at $0.50.
CRO/USDT 1-day chart
While things are looking up for Crypto.com token relatively speaking, a failure to extend the uptrend will result in a retest of the 3-day demand zone, ranging from $0.316 to $0.401. An increase in selling pressure that pushes CRO to produce a daily candlestick close below $0.316 will create a lower low and invalidate the bullish thesis.
In such a scenario, investors could consider placing a stop-loss just below $0.316, which also happens to roughly coincide with the 200-day SMA.
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