Crypto.Com (CRO) May Soon Get to the Test of the $0.40 Level
Crypto.com Coin is currently trying to settle below an important support level at $0.43 and risks developing additional downside momentum in case the crypto market pullback continues.
Several Negative Catalysts Are in Play
Crypto.com has recently denied that $15 million worth of assets were lost to a hack, but the controversy has clearly served as an additional bearish catalyst for CRO.
Bitcoin’s move below the important support at $42,600 put additional pressure on crypto assets, while rising Treasury yields hurt all riskier assets.
Today, Treasury yields are moving higher again as traders bet on aggressive rate hikes from the Fed. In this environment, cryptocurrencies may find themselves especially vulnerable.
A Move Below the Support at $0.43 Will Push CRO Towards $0.40
CRO is currently testing the important support level at $0.43. This support level has already been tested in January and proved its strength. RSI remains in the moderate territory, so there is enough room to develop additional downside momentum in case the right catalysts emerge.
A successful test of the support at $0.43 will open the way to the test of the next support at $0.40. If CRO declines below this level, it will head towards the next support at $0.38.
On the upside, CRO needs to settle above $0.45 to have a chance to gain upside momentum in the near term. The next resistance level for CRO is located at $0.47. In case CRO gets above this level, it will head towards the next resistance at the 20 EMA at $0.4840.
Taking a look at H1 chart, we can see that shorter-term RSI also remains in the moderate territory, so CRO will have a good chance to develop additional downside momentum in case it manages to settle below the important support level at $0.43.
The near-term trend is bearish, and CRO looks ready to move lower amid broader crypto market pullback which is triggered by rising Treasury yields.
This article was originally posted on FX Empire
