Crypto.com price spells trouble, traders beware

Crypto.com price action was underpinned at the end of last week, and traders tried to profit by triggering a bounce off the supported level in CRO price action. The idea was good, but unfortunately, the plan lasted only one trading day as the European session was closing, and cryptocurrencies are on the back foot. Across the board, it is another big day of slaughter and mayhem with all risk assets on the chopping block, and the euro roaring to 20-year lows against the US dollar, creating a systemic risk for a seismic shock in all assets in case the EUR/USD pair drops below parity.

CRO price could surprise trades with a 60% loss

Crypto.com price was underpinned these past few days by a technical level at $0.11. That level held quite nicely since Friday, and bulls tried to piggybank on the level, creating a bounce with some upside gains. CRO price could have gone as far as possibly $0.15, where it would have been capped by the 55-day Simple Moving Average (SMA) and the low of May 12, but instead, bulls are getting squashed against that same support level at $0.11, which looks set to break. 

CRO price sees bears drilling down on bulls and pushing them against the wall at $0.11. Once bulls forfeit and start cutting their positions, the sell-side will increase and outpace the buy-side volume, triggering a break to the downside. Expect to see the first leg towards $0.08 near the monthly S1 support and the next $0.04 below the monthly S2. This two-tiered descent will depend on whether the US dollar can break below parity on the euro and trigger a massive domino effect in the market.

CRO/USD daily chart

A bounce could still materialise again and see further uplift if the high of Monday gets broken to the upside. A quick rally then could unfold towards $0.14, above the monthly pivot, holding roughly 27% of gains. Another leg higher will depend on stars aligning, with the USD pulling back from its elevated level and equity markets rallying several percentages.