Crypto.com price to pull a u-turn after market slump
|- Crypto.com price is still reeling from the staking rewards debacle.
- Selling pressure is still strong, creating more difficulty for bulls to recover.
- Broad risk-off sentiment continues to generate weakness in the crypto space.
Crypto.com price hit new 2022 lows today, reaching the critical $0.20 level before bouncing back towards $0.22. Tuesday’s trading saw CRO buck the downtrend of the wider cryptocurrency market, but it did not stop sellers from taking control on the Wednesday open and pushing CRO lower.
Also read: Is MSTR stock facing possible bankruptcy on Bitcoin collapse?
Crypto.com price like to reverse and retest the $0.40 range
Crpyto.com price is still suffering from last week’s announcement with the curtailing of staking rewards for CRO cardholders. Despite CRO corporate walking back that decision (somewhat), price action is still depressed. However, the technicals show a reversal play is likely to occur at any moment.
From an Ichimoku perspective, a bullish corrective move is highly probable. There are massive gaps between the bodies of the daily candlestick and the Tenkan-Sen, showing massive disequilibrium and overdone selling. Additionally, Crypto.com price is near a Kumo Twist - an occurrence that can often identify where a new swing high or low may develop.
CRO/USDT Daily Ichimoku Kino Hyo Chart
Additionally, the oscillators for Crypto.com price are extremely oversold. The Optex Bands have just moved out of historical all-time lows. Likewise, the Relative Strength Index and the Composite Index show regular bullish divergence at extreme lows.
The combination of the Ichimoku time and price levels with the extreme oversold conditions in the oscillators complement a strong buy setup on the Crypto.com Point and Figure chart.
A theoretical long opportunity for Crypto.com price now exists with a buy stop order at $0.265, a stop loss at $0.23, and a profit target at $0.43. A trailing stop of two to three boxes would help protect any profit made post entry.
The theoretical long trade setup is based on a pattern in Point and Figure analysis known as a Pole Pattern. A Pole Pattern has at least five Os below a multiple bottom. The entry is at 50% of the range of the current O-column.
$0.01/3-box Reversal Point and Figure Chart
The current O-column can move as low as $0.17 before the long setup would be invalidated. Additionally, if a new column of Xs forms, then reverses with another column of Os before the 50% level is hit, the entry is invalidated. In that scenario, Crypto.com price would likely retest the $0.10 value area.
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