Crypto.com price due for a powerful rebound to $0.32
- CRO price has significant bullish divergence.
- Crypto.com price has reached a breached strong Fibonacci level.
- Invalidation of the uptrend scenario is a close below $0.16.
Crypto.com price is due for a countertrend rally to balance out the steep decline.
Crypto.com price could reach $0.32
Crypto.com price is showing reasons to believe in a strong countertrend rally. The bears have managed to breach considerable amounts of liquidity under a parallel channel median line as the CRO price currently trades at $0.18. The liquidity grabs could be viewed as contrarian bullish as market makers now have more control to push the price in the direction of their choice. Likely, bulls are waiting at the lower half of the trend channel, whose buy orders may not get filled as the price could begin impulsing higher.=
Crypto.com price provides a few subtle confluences, adding to the bullish countertrend idea. The CRO price looks extremely extended, having failed to retrace 50% of each decline. Secondly, a Fibonacci projection tool surrounding wave 1 into wave 2 forecasts the low at $0.16 directly with the 423.6 Fib level. The 423.6 Fib level is a common target for wave three bottoms. Lastly, the Relative Strength Index shows multiple bullish divergences on the daily chart, proposing the idea for an entry in the coming days.
CRO/USDT 1-Day Chart
Invalidation of the bullish uptrend lies at the swing low, marked $0.165. If the bears breach this level, a $0.10 CRO price will be on the cards, resulting in a 45% dip from the current Crypto.com price
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
