In this new Monday Technical Analysis, we are going to take a look at cryptocurrency CRO. For several months, the asset has been evolving in a downward trend. Is it about to operate a trend reversal in the market to confirm a rise that could last several weeks. Today we will analyze the asset against the dollar and Bitcoin determining the key levels to watch and the scenarios that we can determine for the next few weeks depending on the evolution of the price. Without further ado, let’s jump right into TradingView.
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The CRO is still below the pivot zone of the range
First, let’s start our CRO analysis with the weekly scale to gain perspective on the situation of the asset. We can see that since the loss of the confluence of EMA 13/15/32 in April, the asset has experienced a very powerful drop. The first bearish leg at the start of 2022 is minimal when we compare the two bearish periods.
Now, since May, the asset is moving in a wide range with a lower limit at $0.098 and an upper limit at 0.153/0.157 dollars. Within this range is a hub area. When the price is above, the probability of a price return to the upper limit is more important. Converselywhen the CRO is below the pivot zone, it is necessary to favor a return of the price to the lower limit.
This pivot zone is located at 0.12/0.124 dollar. It is currently in confluence with the EMA 13 which the price has failed to recover since it was lost during the month of April. The level on which the course is located is important. If the CRO manages to overcome it with a bullish breakout within the framework of a weekly close, bullish targets may be considered with a return, in the first place, to the upper limit of the range which is in confluence with the EMA 25
How has the CRO evolved over the past few days?
In recent days, we can see a positive evolution of the CRO against the dollar. When we look at the daily time unit, we can see that the asset has held up on the VAL (Value Area Low) for several weeks while compressing with the EMA trio which acted as resistance. Moreover, the POC also acted as resistance. As a reminder, this is the price level at which most of the trading volume took place. This information is given to us by the volume profile. It is therefore a level to watch when the price approaches it.
During the end of October, the CRO was able to free itself from the trio of EMA as well as the POC in order to bounce back from it via a bullish pullback. This rebound is identified on the chart with a green circle. From now on, the challenge for the asset is to free itself from the pivot zone that we have identified on the weekly scale as well as the daily MA 100 which makes it possible, overall, to determine the bias to have.
In addition, we can see a wick of the asset on the HAV (Value Area High). As we discussed in the weekly part of the analysis, if the CRO manages to close above this confluence of technical levels, the bias to have will indeed be bullish, although it is important to be watch out for a false bullish breakout to entice buyers. Besides the weekly EMA 25, what are the other targets to consider? We can establish intermediate resistances, not shown on the chart, at $0.135 and $0.143.
Is the asset underperforming against the king of cryptos?
While the asset is not yet free of the EMA13 against the dollar, the situation is different with bitcoin. It will be necessary to monitor the weekly close in order to determine the confirmation, or not, of a trend reversal. In addition to this dynamic resistance, we must also watch the pivot level within the range that has lasted since May 2022. This hub area is located at 5,921 satoshis. If the CRO manages to get rid of it, it will be in a favorable situation against Bitcoin.
In the event that bitcoin dominance continues to falter against the rest of the market, the CRO could potentially do well by attempting a push against the dollar. Of course, it remains to be seen whether the DXY (Dollar Index) will continue its fall or if it will put an end to the current rally in cryptos. In any case, if the CRO manages to overcome these technical levels, it could seek the EMA 32 within the next few weeks. For the moment, nothing is decided yet since we are waiting for the weekly closing.
Here we are at the end of this technical analysis on the CRO of Crypto.com, you can see that the asset is still under resistance although it has recently broken out of some key levels. Let’s see if the market continues its bullish rally within a rather bearish underlying trend. If cryptocurrencies continue to push higher, CRO could have a nice upside potential over the next few weeks. Of course, this will be the case if it breaks the current resistances. If it does not succeed, it will be the sign of a strong comeback of sellers who could put an end to the dream of a nice rebound for the end of 2022. While waiting to know more about the evolution of the CRO, do not hesitate to discover one of the articles of the Wall Street Wolves on Supports and Resistances. It will allow you to correctly identify the levels to monitor on the price of an asset.
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