Cronos price could get washed away as bulls cling to Goldilocks outlook toward $0.10
- Cronos price shows fatigue after the bulls got a rejection from further upside on Tuesday.
- CRO has plenty of reasons why its price action will get underpinned.
- Expect a drop first before $0.10 will be taken out later next week.
Cronos (CRO) price is set to face some short-term headwinds as markets enter a very difficult phase for 2023. After roughly two months into this new year, it is becoming clear that markets remain eager to stay positive and push risk assets up to higher heights. In comparison, central banks are pushing against risk assets to limit the risk of inflation taking off again.
Cronos price will endure some pain and choppy trading in the coming weeks
Cronos price is a perfect example of things to come as its price action is still in the middle of the range between $0.10 on the upside and $0.07 on the downside. While headwinds and tailwinds are forcing a rotation, it is very difficult to get a longer-term view. Traders will need to listen to the central bank language and the economic data that comes out in the meantime to assess when the right time will be to gear up for that breakout trade.
CRO is still expected to respect the mentioned boundaries and slightly favors a leg higher once the rally starts again. Expect to see some downward pressure toward $0.07 where bulls will reenter for a pop higher. A break above $0.10 would follow through toward $0.13 to try and claim ground at the monthly R3 resistance level.
CRO/USD daily chart
In case of a break below $0.07, a wide area opens up with the risk of some substantial losses. The first support nearby is around $0.06 at the monthly S1, which bears 20% losses. Depending on the forces behind this decline, that low of 2023 could also be at risk near $0.05.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
