Crypto.com coins print 5% gains intraday and break through the bearish fortress
|- Crypto.com coins are rallying for a second consecutive day alongside equities.
- CRO price action enjoys both tailwinds from the equity rally and the weaker dollar.
- More upside looks granted, but keep in the back of your mind that the bigger macro picture is still ugly.
Crypto.com coins (CRO) price action has popped over 8% since trading started on Monday morning, when Asian stocks tanked massively. CRO price action has received support from the US stock markets, where all three major indices are on a winning streak with two consecutive gains in a row already – and those during earnings season. Additionally, some rumours allude to the fact that the Fed could be near its tipping point and could start slowing down its hikes, triggering a reshuffling of the long dollar positions with a weaker dollar.
CRO price has room, but look around the corner
Crypto.com coins are having a field day, or rather a field week thus far, as CRO price action prints several percentage gains together with several other cryptocurrencies. The asset class is repricing as the stronger dollar has faded substantially since Tuesday. Although this is a good window of opportunity, traders must keep in the back of their minds that the overall picture is still ugly, with recessions, further escalations in Ukraine, and possible defaults and meltdowns of smaller economies, still raising the threat of tail risks to consider.
CRO price, thus, despite the above disclaimer, could still rally as much as 17% towards $0.13/$0.14. That is roughly the peak seen at the end of August, when the 55-day Simple Moving Average (SMA) revealed its power as a bear cap for the first time. A return to those levels looks okay and would fit the narrative of a range trade as the overall picture is not that rosy and does not support a full-blown blowout rally to $0.16 or $0.18 just yet.
CRO/USD Daily chart
The current macroeconomic drivers however still have not changed fundamentally as inflation remains high, and price pressures more present than ever. Households are still seeing their disposable income slink more and more monthly, and governments still need to talk about austerity to pay back their several rescue packages from COVID and energy measures. Another possibility, therefore, is that market's pullback which would mean that CRO price could soon see itself revalued at between $0.1050 and $0.098.
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