price crash triggers a bullish setup, CRO likely to rally 16%

  • price is down 18% in less than three days, creating a triple bottom at $0.481.
  • This technical formation could lead to a 16% increase in CRO to $0.589.
  • The closing of the four-hour candle below $0.481 will invalidate the mentioned setup and may stimulate more decline. price has been in a downtrend since November 24, 2021, when it established a new all-time high. However, CRO found a respite as it rebounded from the critical support level four times in less than two months, indicating the vital nature of this level. The recent dip pushed CRO into this area, revealing a triple bottom setup in action. price expects a comfortable bounce price is down around 18% in the past three days and made a swing low that coincides with the $0.481 support level. Interestingly, the CRO has marked this level two more times since December 4.

These three retests resulted in a triple bottom pattern, which indicates that an upward trend may start soon. Assuming the bulls come together, the price of will go back to $0.589 and collect the liquidity above it. This increase will constitute a 16% rally and the uptrend is likely to end.

However, if buying pressure continues to increase, price could revisit the $0.662 resistance barrier, taking the rally up to 30% from the current position – $0.505.

CRO / USDT 4-hour chart

As things research the price, failure to see increased buying activity could prove fatal. If there is a lack of interest on the part of the bulls, there is a high chance, CRO will cut through the $0.481 support floor.

This development would create a lower bottom, invalidating the bullish hypothesis and indicating the possibility of a further decline to the immediate support level at $0.424.