This Web3 move by Crypto.com could be a good bet for patient investors
- Crypto.com price has crashed 83% over the last six months, but a bottom could be near.
- Due to a bullish divergence, CRO has posted a ‘buy signal,’ hinting at a 50% run-up.
- A daily candlestick close below $0.139 will invalidate the bullish thesis.
Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.
Moreover, Crypto.com, the company behind CRO token, has named new managing director Kwon Park to further its effort in the Web3 space. With NFTs and Crypto gaming taking the center stage, institutional investors are looking at Web3 as the next big thing.
Outlining his views Park stated,
This is an incredibly exciting time for Crypto.com with unprecedented growth of our products and services, and I look forward to helping the company continue the momentum in its journey.
Crypto.com price prepares for a U-turn
Crypto.com price crashed 83% from its all-time high at $0.975 on November 24, 2021, and formed a swing low at $0.167 on May 12. Despite the ripple effects of the LUNA crash dissipating, CRO sellers have pushed it lower to produce a lower low at $0.163.
All altcoins have been hit by similar declines as Bitcoin took a dip on May 26, falling to levels where it can collect liquidity below significant lows. As a result, Crypto.com price has created a lower low, which could give a bearish outlook at first glance.
Unlike CRO price, however, the Relative Strength Index (RSI) has produced a higher low, indicating the formation of what is known as bullish divergence. This technical phenomenon tends to resolve by propelling the underlying asset’s price higher.
In the case of Crypto.com price, investors can expect CRO to make a run for the immediate barrier at $0.202. Clearing this blockade will allow bulls to ride the trend to the $0.249 hurdle, bringing the total rally to 50% from the current position at $0.167.
CRO/USDT 1-day chart
While things are looking optimistic for CRO, a sudden flash crash that pushes the RSI to produce a lower low would undo the bullish divergence.
In such a case, if CRO were to also produce a daily candlestick close below $0.139, it would invalidate the possibility of an uptrend. This development could also trigger Crypto.com price to crash to the $0.093 support floor.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
