beincrypto.com
The Crypto.com (CRO) price is showing signs of short-term weakness, which could lead to an initial retracement before the upward trend continues.
CRO is the native token of the Crypto.com cryptocurrency exchange. On Jan. 6, the CRO price broke through a short-term descending resistance line (dashed). It then increased quickly, reaching a high of $0.085 on Jan. 19. After a short drop, the price returned to the same level on Feb. 6. It has been trading slightly below it since.
Besides a potential double-top pattern, the daily RSI has generated bearish divergence. Divergences of this type frequently precede downward movements. Furthermore, the trend in Jan. has been characterized by long upper wicks, signs of selling pressure.
The main resistance area is between $0.090-$0.101, created by a descending resistance line and a horizontal resistance area. Only when the price breaks out of this confluence of resistance levels can the Crypto.com price trend be considered bullish.
Crypto.com Price Could Correct Before Upward Trend Resumes
The technical analysis of the short-term six-hour chart indicates that the CRO token price is most likely in wave four of a five-wave upward movement (black). The sub-wave count is highlighted in red, indicating that wave three was extended.
If the count is correct, the CRO coin price will fall toward the 0.382-0.5 Fib retracement support level at $0.071-$0.074. This could occur in the next 24 hours. Following that, the upward trend could continue.
The previously mentioned confluence of resistance levels suggests that the top of the upward movement could be near $0.101. However, a more accurate estimate can be provided once wave four is completed.
This bullish CRO price forecast would be null and void if the price fell below the $0.060 high of wave one (red line).
To conclude, the most likely CRO price forecast is a decrease toward $0.071-$0.074 before the upward movement resumes toward $0.100. A decrease below $0.0601 would indicate that the trend is bearish. In that case, the price could fall below $0.050.