Crypto.com price likely to trap bulls as downside objective remains unfinished

Crypto.com price shows a recovery as it attempts to produce a higher high above the August 25 swing high at $0.133.
This development could result in trapped bulls, especially if CRO heads down to collect liquidity below $0.0985.
A daily candlestick close above $0.133 with a higher low relative to $0.112 will invalidate the bearish thesis.

Crypto.com price is on a downtrend with no signs of stopping just yet. However, the recent spike in bullish momentum must have given buyers a wrong impression of a recovery rally as the downside objectives are still uncollected.

If bulls are not careful, they are likely to get squeezed in the coming days.

Crypto.com price plans to undo recent gains

Crypto.com price dropped 28% between August 14 and September 4, creating a swing low at $0.112. This downswing was followed by a quick recovery on September 4 with a 2.80% upswing over the next two days.

However, this move is temporary and likely to be reversed as market makers take CRO lower to collect the liquidity resting below equal lows formed at $0.1080 and $0.0985. Opening long positions after this development will have a higher chance of succeeding.

But for now, Crypto.com price is getting ready for a 10% to 19% downswing as bears seize control.

CRO/USDT 1-day chart

While things are looking bullish for Crypto.com price due to the sudden burst in buying pressure, this rally should be avoided. The liquidity resting below $0.1080 and $0.0985 are likely to be collected before a massive run-up.

However, bulls could prematurely trigger a run-up if they can produce a daily candlestick close above $0.133. This move will invalidate the bearish thesis, but additional confirmation will arrive if Crypto.com price can set up a higher low relative to September 4 swing low at $0.112.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.