Crypto.com appears to form local bottom with significant upside potential

Crypto.com token has been trading close to a crucial support level for nearly ten days. This consolidation seems to have set up a bottom reversal pattern, suggesting that a trend change is likely for CRO.

Crypto.com token eyes a higher high

Crypto.com token bounced off the $0.441 support level on January 8 and followed up with two more retests over the next nine days. This development gave rise to a triple bottom setup - a bottom reversal pattern that hints at a shift in trend favoring bulls.

Adding credence to this bullish outlook is the daily demand zone, extending from $0.384 to $0.456. Investors can expect the third tap on the $0.441 support barrier to trigger a massive uptrend.

Market participants can enter long at the retest of the $0.441 barrier and look to book profits around the $0.512 resistance barrier. This move would allow traders to capitalize on a 16% ascent.

CRO/USDT 6-hour chart

While things are looking up for the Crypto.com token, a failure to hold above $0.384 will invalidate the triple bottom setup. CRO will lose its bullish outlook on a six-hour candlestick close below $0.384. 

This development will create a lower low, shifting the odds in the bears’ favor and potentially triggering a move down to $0.359.