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

Crypto.com token is forming a triple bottom setup at $0.441, forewarning a reversal.
A 16% upswing to $0.512 is likely if CRO bounces off the significantly important support level at $0.441.
A breakdown of the $0.384 support level will invalidate the bullish thesis.

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.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.