- Crypto.com price auctions on the bottom end of a parallel channel that has significantly impacted CRO throughout the year.
- This year's largest influx of transactions is witnessed on the Volume Profile Indicator near current price levels.
- Invalidation of the bearish thesis is a breach above $0.08.
Crypto.com price is in a make-or-break situation. If the current levels do not hold as support, a penny-from-Eiffel-style decline could occur in the coming days. Key levels have been defined to gauge CRO's next potential move.
CRO price could get ugly
Crypto.com price hovers above what appears to be its final levels of support. On November 14, after a 45% decline on the month, the Ethereum-based cryptocurrency exchange token has landed at the bottom half of a descending parallel trend channel, which has acted as support and resistance throughout 2022.
Crypto.com price currently auctions at $0.067. Accompanying the breach into the lower half of the trend channel is a significant uptick in transactions on the Volume Profile Indicator. Based on several exchanges volume data, the current price is the most transacted market day in all of 2022. Considering these factors, CRO price could be setting up for a definitive move that will either wipe out knife-catching bulls or trap the overly confident bears.
CROUSDT 1-day chart
The bearish targets are likely at the 2020 lows near $0.05. If the bulls do step in to-aid support near the lows, then a free-fall crash similar to FTX could be on the cards for the Ethereum-based exchange token. FXStreet's News Author Ekta Mourya recently reported concerning evidence that confounds the bearish technicals. According to Ekta's report, Crypto.com was involved in sending $404 million worth of Ethereum tokens to Gate.io, another exchange with affiliation to FTX and Sam Bankman-Fried.
Still, the bulls may be able to use the lower trend channel as support once again and provoke a bear-trap rally. Invalidation of the bearish thesis could arise if the bulls can conquer the $0.08 price level. In doing so, an additional buyers' frenzy could commence with bullish targets near $0.10, and potentially the $0.12 liquidity zones. Crypto.com price would rise by 90% if the invalidation scenario plays out.
In the following video, our analysts deep dive into the price action of CRO, analyzing key levels of interest in the market. -FXStreet Team
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