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Crypto.com Coin traders beware, reality is about to kick in

  • Crypto.com Coin price action rallies over 10% intraday on Friday.
  • CRO price, however, could start to see a fade and full collapse as the dollar makes new highs against almost every G10 currency.
  • Expect a delayed effect in cryptocurrencies with CRO price torn between equity buyers and bears trading the dollar strength.

Crypto.com Coin (CRO) price action has had an eventful 48 hours thus far as the central bank bonanza impacted almost every facet of the financial markets. Whipsaw moves, interventions not seen in over two decades and a low in pound sterling that takes us back to Black Wednesday of 1992 have each taken their toll. All the elements are there to make this a rollercoaster ride for traders who could easily wipe out whole portfolios in just one trading session if inexperienced.

CRO price at risk of full fade back to open

Crypto.com Coin price has been affected by all these events but has not made much of an effort to fight the trend. In ASIA PAC trading, however, markets rallied, as equities tried to pare back losses from the past few days. Bulls jumped on a rally that pushed CRO price above $0.1200 towards $0.1219 and printed over 10% gains at one point. 

CRO price, however, is still at risk of pulling back to either $0.1100 or even $0.0985 and leaving bulls out in the cold, or at least the ones who want to join the rally and will be in for a negative surprise at the end of the day. During the European trading hours, the greenback has put its foot back on the gas pedal as traders assess the panic in Japan, China doing nothing to support the yuan, and the BoE almost fighting over what to do next, making the dollar and the Fed the most credible and safest place to be right now. Expect a possible negative daily and weekly close as CRO price fails to withstand the stronger dollar close weighing on its valuation.

CRO/USD Daily chart

CRO/USD Daily chart

Should the rally persist and the dollar fade a bit going into the US session, expect the rally to be capped on the topside. With the 55-day Simple Moving Average providing credible resistance, limited gains are forecasted at around $0.1275. From there, the risk is too big for a firm rejection or a false break and bull trap forming before the weekend.

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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