finds support as CRO eyes a return to $0.55

  • price moved up to the 61.8% Fibonacci expansion to $ 0.44 and immediately bounced.
  • Extreme oversold conditions are present in oscillators.
  • Downside risks persist as upside potential may be limited. price experiences a strong rebound after hitting a critical Fibonacci expansion zone. However, it is not yet known whether the rebound will lead to a resumption of the previous uptrend. Critical resistance levels must be tested before any confirmation of a new uptrend can occur. price positioned for 20% in the $ 0.55 value area’s price has experienced significant and persistent selling pressure over the past month. Since reaching a new all-time high on November 27, 2021, CRO has been falling lower and lower, hitting new two-month lows at $ 0.44. That’s a loss of more than 63% from the all-time high.

All three oscillators indicate that a significant bounce is approaching. The Relative Strength Index recently switched to bear market conditions after losing 40 as support. However, it has found support just above the first oversold level in a bear market (30).

The Composite Index does not show any bullish divergence, but has printed a new 2022 low and the lowest low since April 26, 2021. Finally, the Optex Bands oscillator has moved towards extreme oversold conditions. The combination of the new multi-month lows in the composite index with new extreme oversold levels in the Optex bands provides significant strength to a bullish bias in the near term.

Traders should expect a return to the critical price level of $ 0.50. The bulls can stop at this level as it contains the 50% Fibonacci retracement and the daily Tenkan-Sen. A move above $ 0.50 would put price on the way to the next resistance level in the Ichimoku system, the Kijun-Sen, at $ 0.55.

Ichimoku CRO / USD daily chart price bulls can rest assured that a prolonged trend is likely to continue if CRO closes above the 38.2% Fibonacci retracement at $ 0.61. If that happens, that puts the price above the Tenkan-Sen and Kijun-Sen, but more importantly, the Chikou Span would be above the candles and in an open space.

A daily close below the 61.8% Fibonacci expansion to $ 0.44 would invalidate the current bullish outlook.


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