Rising wedge, chart pattern

Crypto nugget: The CRO has the fangs!

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Crypto.com is a cryptocurrency exchange platform, one of the best known in this field. It continues to increase the number of features made available to users with its token: wallet, stacking system, sponsorship and even a crypto card, the advantages of which are becoming more and more numerous as the number of CROs blocked by it. user increases. But that’s not all, crypto.com now and very recently supports the cronos blockchain which makes it possible to obtain the many benefits of decentralized finance. No wonder the CRO token is taking full advantage of this growing ecosystem. Let’s take advantage of this on our side to go to the charts in order to highlight the key levels.

Today’s technical analysis is brought to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

CRO: A double resistance on the path of the ATH against bitcoin

After registering a all time top (ATH) at 3321 satoshi at the start of 2019, the CRO juggling between supports and resistances for many months. Unfortunately, it got rejected several times in contact with an important resistance zone (n°2 on the chart), which I materialized with the red circles. Subsequently, the CRO came to find its low point at 149 satoshi at the beginning of this year.

In order to hope for a return to its highest point (ATH), the CRO will have to break upwards two weekly levels which can be resistance.

If we decide to rely on market memory, the first gray area should act as resistance since the price had already been rejected several times at this level, what you can see with the orange circles. A close above 770 satoshi should open the way towards the second resistance which will probably be more complicated to cross. Indeed, the observation is simple: the impossibility, for the price, of registering a weekly close higher than the zone in question. We can deduce a manifestation of the sellers who always take advantage of buyersleading the price to drop numerous times.

In the event of a power takeover by a CRO which would have to close above 1730 satoshi, the doors would then open wide for a return to the all time high.

A CRO that invalidates bearish chart patterns against the dollar

Once again, we will find it interesting to place ourselves on a weekly chart. On the one hand, we obtain the necessary decline on the current CRO trend, and on the other hand, we immediately see an important price configuration that we will discuss later.

Since the beginning of 2019, the CRO has been evolving against the dollar within a weekly uptrend. In order to make it easier for you to read the chart, I have represented the little green hats which show the inscription of higher and higher troughs and peaks, corresponding to the general definition of an uptrend. This same trend is evolving within a rising bevel, a mostly bearish chart pattern according to the statistics.

Below is a theoretical image of the rising wedge:

Rising wedge, chart pattern
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We notice very well this similarity with the figure represented on the graph of the CRO. The price is moving in an uptrend, oscillating between a support and an oblique resistance. Statistically, with a bearish breakout having a 60% chance of occurring, most theoretical pictures look at targets under this scenario. However, there is one factor to consider, that of the bull run in which certain bearish patterns can be more easily invalidated.

In this case, our rising wedge was not broken from below, and it was even the opposite that occurred with a clear close above the oblique resistance.

A powerful uptrend against the dollar, will formula 1 stop?

Finally, let’s turn to the daily to have in mind some areas where the price could react technically. For the sake of readability, the support and resistance of the wedge mentioned above will be in green, which will allow you to understand a little better the action of the price on these levels.

After charting an ATH at $0.27 on February 23, the price failed to close above its rising wedge resistance. Salespeople gradually taking over, buyers ran outleading the price to fall over the weeks. Then, during the second half of June, the price found its low point at $0.08 on the support of the rising wedge.

These findings are an opportunity to remind you of an important element: it is imperative to graphically analyze the large units of time in order to identify potential levels where the price could take support or be rejected.

Subsequently, the CRO faced numerous resistances (0.13 dollar, 0.20 dollar or even 0.22 dollar). But every time he was able to break these areas upwards, allowing him to gradually return to his all time high, which he did very recently at the beginning of November. The CRO even offered himself the luxury of breaking the resistance of the bevel, allowing him to be in price discovery, a situation that makes it possible to register new highs, whether for a short or long period.

The current objective is simple: monitor the CRO against the dollar. On a steep retracement, keep in mind former resistance at the rising wedge at $0.30/$0.31 where price could pull back to build a key long-term level. In the event of a potential downward breakout of this zone, the CRO could return to its old ATH. However, against bitcoin, the CRO is on the verge of breaking an important resistance, which could give the sign of continuity of the current rally against the dollar. In this scenario, I invite you to watch the round numbers for the CRO, such as $0.5, a level that seems to be resistance for the moment.

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