Why Crypto.com’s recent drop to $0.10 may have gone too far
- Crypto.com price has impulsively declined through a barrier.
- CRO price has breached the 8-day and 21-day simple averages.
- Invalidation of the bearish thesis is a breach above the large engulfing candle at $0.12.
Crypto.com’s CRO price shows newfound bearish technicals that Merritts concern. Key levels have been identified.
Crypto.com price points south
Crypto.com price recent decline may not be an ordinary sell-off. On September 16, the bears successfully established a closing candle beneath the 8-day and 21-day simple moving averages. In the following, a breach of the previous triangle apex occurred. This is a significant bearish gesture under Auction Market Theory as the triangle was the catalyst before the summertime bull run occurred.
CRO price currently auctions at $0.1093. A rebound toward the recently breached apex and an uptick in volume has occurred. This could be attributed to shorts entering the market upon the retest of the breached barrier. If the technicals are correct, a decline of equal value to the initial September bear rally could occur. Such a move would target the $0.08 level for a 20% decline.
Invalidation of the bearish thesis is closing the 4-hour candle above the large engulfing candle that breached through the triangle apex at $0.012. If the bulls can hurdle this level, they could prompt an additional rally in the short term towards 0.14, resulting in a 26% increase from the current CRO price
In the following video, our analysts deep dive into the price action of CRO, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
