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Crypto.com coin price in a potential pump-and-dump trade

  • Crypto.com coin price pops higher yet again, booking 9% gains in the process.
  • With the Jackson Hole Symposium on Friday, CRO price rallies in thin liquidity as traders are sketchy about taking on new positions.
  • Expect a false break above the technical element before a pullback materializes on the back of a big catalyst.

Crypto.com coin (CRO) price is set to break above a key technical element that normally would be promising more upside potential in normal market conditions. Markets, however, are trading at very slim volumes on Thursday as traders are holding back from entering new positions in light of the Jackson Hole Symposium on Friday. With that key event highlighted by a Fed chair Powell speech, CRO price action is being pumped higher as little resistance is present, but this could result in heavy falls toward the end of this week. Market sentiment could suffer some thunderstorms as the Fedspeak could hold an underlying negative message with massive selloffs as a result.

CRO price could slip below $1

Crypto.com coin price is playing a dangerous game as the price action is getting pumped higher and inflated towards 10% of gains. Price action is also brushing against the 55-day Simple Moving Average, a key technical hurdle that has been working as a resistance cap these past few days. Once broken to the upside, CRO price could lure more investors and traders into its rally on the fear of missing out  on more potential gains to come.

CRO price is thus bearing a big systemic risk as that pop higher might be proved short-lived, as on Friday afternoon, a big financial catalyst is lined up with the Jackson Hole Symposium that annually triggers big impact on markets, with often a binary outcome where price will trade substantially higher or lower. Expectations for this year are a cold shower from the Fed that could see a collapse in cryptocurrencies, with CRO price dropping below the low of this week and might even slip as far as $1, should the message from Fed chair Powell be that dire.

CRO/USD Daily chart

CRO/USD Daily chart

CRO price bulls could surprise the markets with a rally, should that 55-day SMA be defended during the key event from Friday. In case this indicator holds and does not let price action break below it, expect to see a massive bullish bounce that could go to $0.16 for a second test after the failure on August 3. Expect, in case CRO breaks and closes above there, to see a continuing rally toward next week towards $0.19.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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