- Crypto.com price has crashed 83% over the last six months, but a bottom could be near.
- Due to a bullish divergence, CRO has posted a ‘buy signal,’ hinting at a 50% run-up.
- A daily candlestick close below $0.139 will invalidate the bullish thesis.
Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.
Moreover, Crypto.com, the company behind CRO token, has named new managing director Kwon Park to further its effort in the Web3 space. With NFTs and Crypto gaming taking the center stage, institutional investors are looking at Web3 as the next big thing.
Outlining his views Park stated,
This is an incredibly exciting time for Crypto.com with unprecedented growth of our products and services, and I look forward to helping the company continue the momentum in its journey.
Crypto.com price prepares for a U-turn
Crypto.com price crashed 83% from its all-time high at $0.975 on November 24, 2021, and formed a swing low at $0.167 on May 12. Despite the ripple effects of the LUNA crash dissipating, CRO sellers have pushed it lower to produce a lower low at $0.163.
All altcoins have been hit by similar declines as Bitcoin took a dip on May 26, falling to levels where it can collect liquidity below significant lows. As a result, Crypto.com price has created a lower low, which could give a bearish outlook at first glance.
Unlike CRO price, however, the Relative Strength Index (RSI) has produced a higher low, indicating the formation of what is known as bullish divergence. This technical phenomenon tends to resolve by propelling the underlying asset’s price higher.
In the case of Crypto.com price, investors can expect CRO to make a run for the immediate barrier at $0.202. Clearing this blockade will allow bulls to ride the trend to the $0.249 hurdle, bringing the total rally to 50% from the current position at $0.167.
CRO/USDT 1-day chart
While things are looking optimistic for CRO, a sudden flash crash that pushes the RSI to produce a lower low would undo the bullish divergence.
In such a case, if CRO were to also produce a daily candlestick close below $0.139, it would invalidate the possibility of an uptrend. This development could also trigger Crypto.com price to crash to the $0.093 support floor.
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.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.