Why a 20% rally for Crypto.com price makes sense now
- Crypto.com price is stuck trading below a higher time frame resistance barrier at $0.202.
- A decisive flip above this level is likely to trigger a 20% run-up to $0.249 for CRO.
- A four-hour candlestick close below $0.173 will invalidate the bullish thesis.
Crypto.com price is on the verge of flipping a crucial resistance barrier into a support level. Assuming this conversion occurs, CRO will be primed for a quick expansion to the next hurdle.
Crypto.com price prepares to embark
Crypto.com price has crashed roughly 53% since May 1 and set a swing low at $0.167. This downswing caught traction after the LUNA-UST debacle and slid below the $0.249 and $0.202 support floors.
As the recovery phase begins across Bitcoin and other altcoins, CRO is also hoping for the same. However, Crypto.com price needs to flip the $0.202 level into a support barrier to signal a resurgence of buyers. In such a case, CRO will attempt a quick run-up.
Investors can use the flip of $0.202 as a buy signal and ride the explosion of Crypto.com price to $0.249. This move would constitute a 20% gain and is likely where the upside is capped in the short term.
CRO/USDT 4-hour chart
While things are looking up for Crypto.com price, a downturn in Bitcoin price could trigger a descent in altcoins, including CRO. In this situation, the altcoin could crash 10% to retest the intermediate support level at $0.173.
If sellers manage to produce a four-hour candlestick close below this level, it will invalidate the bullish thesis for Crypto.com price. This development could further trigger a crash to $0.139, where buyers can regroup and attempt an uptrend.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
