(Akash Girimath – FXStreet)
– Crypto.com price collects liquidity resting below equal lows at $0.1080, hinting at a reversal.
– Investors can expect a carefree ascent to $0.1260 to collect the buy-stop liquidity.
– A daily candlestick close below the range low at $0.0985 will invalidate the bullish thesis.
Crypto.com price has been on a downtrend since it formed a peak on August 3. This development has caused CRO to produce a string of lower lows and lower highs. However, on closer inspection, the altcoin reveals a liquidity run and a potentially bullish setup.
Crypto.com price ready to explode
Crypto.com price swept below the equal lows at $0.1080 on September 15, and this move steepened over the next five days. However, the price action from August 3 shows that CRO has produced two distinctive lower highs and four lower lows.
These Crypto.com price swing points are connected using trend lines, which reveal a falling wedge pattern. This technical formation hints that a bullish reversal is forthcoming and forecasts a 21% upswing, determined by measuring the first swing high and swing low to the breakout point.
Although Crypto.com price has not produced a breakout, investors can expect it to occur around $0.1120, which puts the falling wedge target for CRO at $0.1360. However, judging by the price action, a conservative target is the liquidity resting above the equal highs formed at $0.1260.
While things are looking up for Crypto.com price, there is another equal low formed at the range low at $0.0985, which might be swept. Therefore, investors need to be generous with their stop-losses, especially if they decide to take up this trade.
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On the other hand, if Crypto.com price produces a daily candlestick close below $0.0985 and flips the range low into a resistance level, it will invalidate the bullish thesis. This development could see CRO revisit the $0.0922 support floor.
Note:
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