Crypto.com price may form a bear trap that could launch CRO to $0.50
- Crypto.com price confirmed a massive, bearish short entry opportunity on Sunday – but sellers have not followed through.
- Bulls put sellers at risk if they can close CRO above a critical resistance level.
- Downside potential could be significant if CRO is rejected.
Crypto.com price shows some early signs of recovery after experiencing intense selling pressure over the last few weeks. CRO recently closed below the Ichimoku Cloud and a bear flag, giving short-sellers one of the best entry opportunities in months – but they have not followed through.
Crypto.com price setup to trigger a bear trap if CRO closes at or above $0.42
Crypto.com price confirmed an Ideal Bearish Ichimoku Breakout entry last Friday (March 4, 2022) while simultaneously confirming the breakout below the current bear flag. Signs of continued bearish price action remained with renewed selling on Sunday and Monday.
However, bulls rallied Crypto.com price back to the bottom of the bear flag and the Tenkan-Sen at $0.42, it's a make-or-break situation for CRO. If bears keep CRO below the flag and Tenkan-Sen, that's likely the sign sellers need to continue pressuring on Crypto.com.
CRO/USDT Daily Ichimoku Kinko Hyo Chart
However, if bulls close Crypto.com price above the lower trendline of the bear flag and above the Tenkan-Sen, a bear trap will likely be triggered, causing existing short positions to cover while simultaneously bringing sidelined bulls into the market as buyers.
The projected target for buyers in a bullish scenario is likely limited to the top of the Ichimoku Cloud (Senkou Span B) at $0.50, with some initial resistance probably felt near the 50% Fibonacci retracement of all-time high to the low of the weekly strong bar at $0.44.
Downside risks could be substantial as the Volume Profile between $0.33 and $0.27 is non-existent.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
