Crypto.com appears to form local bottom with significant upside potential
- Crypto.com token is forming a triple bottom setup at $0.441, forewarning a reversal.
- A 16% upswing to $0.512 is likely if CRO bounces off the significantly important support level at $0.441.
- A breakdown of the $0.384 support level will invalidate the bullish thesis.
Crypto.com token has been trading close to a crucial support level for nearly ten days. This consolidation seems to have set up a bottom reversal pattern, suggesting that a trend change is likely for CRO.
Crypto.com token eyes a higher high
Crypto.com token bounced off the $0.441 support level on January 8 and followed up with two more retests over the next nine days. This development gave rise to a triple bottom setup - a bottom reversal pattern that hints at a shift in trend favoring bulls.
Adding credence to this bullish outlook is the daily demand zone, extending from $0.384 to $0.456. Investors can expect the third tap on the $0.441 support barrier to trigger a massive uptrend.
Market participants can enter long at the retest of the $0.441 barrier and look to book profits around the $0.512 resistance barrier. This move would allow traders to capitalize on a 16% ascent.
CRO/USDT 6-hour chart
While things are looking up for the Crypto.com token, a failure to hold above $0.384 will invalidate the triple bottom setup. CRO will lose its bullish outlook on a six-hour candlestick close below $0.384.
This development will create a lower low, shifting the odds in the bears’ favor and potentially triggering a move down to $0.359.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
