Crypto.com finds support as CRO eyes a return to $0.55

Crypto.com price moved as far as the 61.8% Fibonacci expansion at $0.44 and immediately bounced.
Extreme oversold conditions are present in the oscillators.
Downside risks remain as upside potential may be limited.

Crypto.com price experiences a strong bounce after hitting a critical Fibonacci expansion zone. However, whether the bounce will yield a resumption of the prior uptrend is not yet known. Critical resistance levels are to be tested before any confirmation of a new uptrend can occur.

Crypto.com price positioned for a 20% rise to the $0.55 value area

Crypto.com price has experienced significant and persistent selling pressure over the past month. Since hitting a new all-time on November 27, 2021, CRO has drifted lower and lower, hitting new two-month lows at $0.44. That’s a loss of over 63% from the all-time high.

All three oscillators indicate a significant bounce is coming up. The Relative Strength Index recently shifted into bear market conditions after losing 40 as support. It has, however, found support just above the first oversold level in a bear market (30).

The Composite Index is not displaying any bullish divergence, but it has printed a new 2022 low and the lowest low since April 26, 2021. Finally, the Optex Bands oscillator has drifted into extreme oversold conditions. Combining the new multi-month lows in the Composite Index with new extreme oversold levels in the Optex Bands provides significant strength to a bullish bias in the short term.

Traders should expect a return to the critical $0.50 price level. Bulls may be halted at this level as it contains the 50% Fibonacci retracement and the daily Tenkan-Sen. A move above $0.50 would put Crypto.com price on the road to the next resistance level in the Ichimoku system, the Kijun-Sen, at $0.55.

CRO/USD Daily Ichimoku Chart

Crypto.com price bulls can be confident that a prolonged trend is likely to continue if CRO closes above the 38.2% Fibonacci retracement at $0.61. If that occurs, that puts Crypto.com price above the Tenkan-Sen and Kijun-Sen, but most importantly, the Chikou Span would be above the candlesticks and in open space.

A daily close below the 61.8% Fibonacci expansion at $0.44 would invalidate the current bullish outlook.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.