Crypto.com price consolidates before a major breakout

Crypto.com price has been stuck inside an increasingly tighter and tighter trading range. As a result, pressure is now mounting for bulls and bears to decide on which move CRO will take soon.

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Crypto.com price consolidation likely means a new uptrend is about to begin

Crypto.com price is currently developing a bull flag on its daily Ichimoku chart. Clear support has been found against the Tenkan-Sen. CRO remains above the 50% Fibonacci retracement at $0.44. A long setup identified last week remains a valid trade opportunity.

The theoretical long trade setup is a buy stop order at $0.49, a stop loss at $0.45, and a profit target at $0.76. The trade represents a 6.75:1 reward for the risk. The profit target is derived from the vertical profit target method in Point and Figure analysis and displays an implied profit target of over 57% from the entry.

However, profit targets that are excessive and borderline unrealistic often never play out. It is very improbable that the current X-column would move from $0.49 to $0.76. Because of that, a three-box trailing stop would help protect against any profit made post entry.

CRO/USDT $0.01/3-box Reversal Point and Figure Chart

The long trade idea is invalidated if Crypto.com price drops to $0.44 before the entry is triggered. Downside risks should be limited to the $0.43 value area, where the Kijun-Sen and top of the Ichimoku Cloud (Senkou Span B) exist.

The most important support level for Crypto.com price to remain above is the 61.8% Fibonacci retracement at $0.37. Failure to hold that level would likely trigger a substantial collapse towards the $0.20 value area. While a move that extreme is not likely to occur, geopolitical unknowns and Crypto.com's exposure to possible regulatory hawks could trigger substantial whipsaws. 

CRO/USDT Daily Ichimoku Kinko Hyo Chart