Crypto.com price develops bear trap that could thrust CRO to $0.55
|- Crypto.com price false bearish breakout likely seeing the beginnings of a short squeeze.
- Point and Figure bear trap pattern in play.
- Limited downside risks compared to upside potential.
Crypto.com price sees buyers slap bears away from the daily lows and rally CRO to new intraday highs. The critical price level that bulls must close CRO above is at or above $0.40.
Crypto.com price ready to pull the rug on short-sellers
Crypto.com price action paused on Thursday after moving higher nearly 8% from the Monday open. During the Friday session, sellers had firm control and threatened to return CRO into the descending triangle pattern, confirming a likely bull trap. However, buyers have since stepped in a rallied to the daily open, forming a Bear Trap pattern on the Point and Figure chart.
There is a hypothetical long trade idea for Crypto.com present on the $0.01/3-box reversal Point and Figure chart. The setup is a buy stop order at $0.43, a stop loss at $0.39, and a profit target at $0.55.
The entry, if hit, confirms two important Point and Figure objectives simultaneously. First, the entry confirms a Bear Trap pattern. Second, and perhaps most importantly, the entry breaks the bear market angle (red diagonal line) and converts the $0.01 3-box reversal Point and Figure chart into a bull market.
CRO/USDT $0.01/3-box Reversal Point and Figure Chart
The trade represents a 3:1 reward for the risk with an implied profit target of nearly 30% from the entry. The $0.55 target is very doable, especially given how thin the Ichimoku Cloud is over the next two weeks. If Crypto.com price fails to hit the profit target in two weeks, it will likely experience a slow slide south.
The long trade for Crypto.com price is invalidated if CRO drops down to $0.35 before the long entry is triggered.
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