Crypto.com price unfazed as CRO makes another attempt to crack $0.50

Crypto.com price faced some strong and persistent selling pressure on Thursday, with CRO dropping more than 4%. Evidence of how persistent the selling was is that the Thursday low was also the close. Bears looked to extend that loss into the Friday session by dropping CRO another 3% down – but bulls have since recovered that loss, and CRO is now positive.

Crypto.com price shows more buying pressure and upside momentum ahead

Crypto.com price recently triggered a hypothetical long setup identified on March 22, 2022. The entry confirmed a Bear Trap pattern in Point and Figure and simultaneously converted the $0.01/3-box reversal Point and Figure chart into a bull market. Since then, the first pullback since the bull market conversion has occurred, providing another strong entry opportunity for bulls.

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 going into the weekend should be limited to the $0.43 price level.