- Crypto.com price false bearish breakout likely seeing the beginnings of a short squeeze.
- Point and Figure bear trap pattern in play.
- Limited downside risks compared to upside potential.
Crypto.com price sees buyers slap bears away from the daily lows and rally CRO to new intraday highs. The critical price level that bulls must close CRO above is at or above $0.40.
Crypto.com price ready to pull the rug on short-sellers
Crypto.com price action paused on Thursday after moving higher nearly 8% from the Monday open. During the Friday session, sellers had firm control and threatened to return CRO into the descending triangle pattern, confirming a likely bull trap. However, buyers have since stepped in a rallied to the daily open, forming a Bear Trap pattern on the Point and Figure chart.
There is a hypothetical long trade idea for Crypto.com present on the $0.01/3-box reversal Point and Figure chart. The setup is a buy stop order at $0.43, a stop loss at $0.39, and a profit target at $0.55.
The entry, if hit, confirms two important Point and Figure objectives simultaneously. First, the entry confirms a Bear Trap pattern. Second, and perhaps most importantly, the entry breaks the bear market angle (red diagonal line) and converts the $0.01 3-box reversal Point and Figure chart into a bull market.
CRO/USDT $0.01/3-box Reversal Point and Figure Chart
The trade represents a 3:1 reward for the risk with an implied profit target of nearly 30% from the entry. The $0.55 target is very doable, especially given how thin the Ichimoku Cloud is over the next two weeks. If Crypto.com price fails to hit the profit target in two weeks, it will likely experience a slow slide south.
The long trade for Crypto.com price is invalidated if CRO drops down to $0.35 before the long entry is triggered.
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.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.