Despite extremely bearish news, Crypto.com (CRO) price broke above a descending resistance line.
First, on January 11, the company announced that it would delist Tether (USDT) for Canadians in order to comply with the Canadian Securities Administrators (CSA). Two days later, more negative Crypto.com news emerged. The exchange announced it would be laying off 20% of its workforce, resuming the recent wave of job cuts following the collapse of FTX.
Despite these two negative news, the CRO price has performed admirably this year, gaining almost 45%.
Crypto.com price jumps 45%
The price of CRO has increased since December 20, 2022. It made a higher low on December 30 and subsequently accelerated its rate of increase. Since then, it has moved upwards of 45%.
On January 13, the price of Cypto.com broke above a descending resistance line. It moved above the $0.074 resistance area two days later. On January 16, CRO price validated the line as support (green icon) and then bounced back. This led to a high at $0.085.
Currently, CRO price is facing resistance from the 0.382 Fib retracement resistance level. However, the main resistance area is near the $0.10 level, formed by the horizontal resistance area and the 0.618 Fibonacci retracement resistance level.
Even though the RSI is overbought, it has not generated any bearish divergence. As a result, the upward movement could continue, which will lead CRO price towards the $0.100 resistance area.
On the other hand, a close below the $0.074 support area will invalidate this bullish hypothesis.
Short-Term CRO Price May Surge Before Completing Wave Five
Technical analysis from the short-term two-hour chart shows that CRO price is likely in wave four of a five-wave upward move (black). The sub-wave count is given in red, indicating that Crypto.com price completed five sub-waves over the past 24 hours.
If the count is correct, CRO price will bounce down towards the sub-wave four area at $0.072 before completing the fifth wave. The most likely target for the top of the fifth wave would be $0.10, which would align with the resistance area mentioned earlier.
A break below the wave one high (red line) at $0.060 would invalidate this bullish wave count.
To conclude, the most likely CRO price prediction is an increase of at least $0.100. Whether the price breaks out of this level or gets rejected could determine the future trend. On the other hand, a drop below $0.060 will invalidate this bullish price assumption.
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