Last quarter forecasts from US banks spell trouble ahead for Crypto.com coin price action
|- Crypto.com coin sees bulls fighting, but they might be in for only a short period.
- CRO price is set to correct as several US banks issued worsening forecasts and outlooks for the last quarter of 2022.
- Expect to see a drop to $0.08 as more outflow is set to be happening.
Crypto.com coin (CRO) price action is seeing bulls not giving away their positions and trying to battle against the bearish price action that is holding on to cryptocurrencies. Although CRO price has been able to eke out four consecutive days of gains, any euphoria might be short-lived. Several US banks came out forecasting that cash is the best option going into the last quarter of 2022. That means plenty of investors are due to pull out their funds and drain the capital support for cryptocurrencies with another collapse unfolding.
CRO price set to be drained
Crypto.com coin price is seeing bears being pushed against the monthly pivot at $0.1290 and looks set to break back above the 55-day Simple Moving Average to possibly reboot the test at $0.1598, which failed on August 3. That is as far as the good news goes for this short-term forecast, as a cash drain might get triggered anytime soon. Not only is the seasonality set to kick in, with September being the worst performing month for cryptocurrencies these past five years, but under the current issues with inflation and rising prices, investors and traders might want to put their cash aside to pay for household bills instead of venturing to trade cryptocurrencies.
On the back of that, CRO price could start to slip as cash is pulled out with constant selling pressure overshadowing the price action. First up is that red line at $0.1107 which is the benchmark that needs to catch and hold any dropping price action. If it does not hold, expect to see the CRO situation further deteriorate towards $0.080, which falls in line with the monthly S1 support from July and the monthly S3 for August, bearing a 40% decline.
Due Friday, the Fed Jackson Hole Symposium is set to take place with Fed chair Jerome Powell taking the stage. Markets will be hanging on Powell’s lips to hear about possible hints on the rate hikes plateauing, or maybe even potential rate cuts that could happen. That would put forward a goldilocks scenario where stock markets would rally significantly, and the positive tailwind of the Nasdaq would push cryptocurrencies higher overall. Translated to CRO price action, that would mean a possible break above $0.1598 and hitting $0.20 to the upside, holding near 60% of gains.
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