There may be more trouble on the horizon for the CRO price. The Token, native to Crypto.com, could be in for a large decline.
Like much of the cryptocurrency market, 2021 has been a year of mixed fortunes for the Token.
The CRO price came out of the trap fast in 2021. By February, the price had increased by 370% to $0.2720.
So far, so good.
Six days later, the CRO price was 53% lower at $0.12810. Two weeks further down the line and the CRO had increased by +97% and trading at $0.2500,
The volatile trading conditions continued for the next few weeks. CRO followed the broader cryptocurrency market higher in Mid-April.
Many asset prices set new records in the month. Nonetheless, the CRO price couldn’t improve upon February’s peak and topped out at $0.25167.
During this week’s historic cryptocurrency meltdown, CRO traded as low as $0.9330. The 65% drop from the February high may not be over just yet.
The daily chart clearly illustrates the heightened volatility the price has experienced this year.
It also shows a major trend line has been supporting the price since April 2020. The trend begins at $0.2350, rising to its current level of $0.6940.
Towards the end of last year and the start of this year, the price traded at the trend on several occasions. Each time the CRO price managed to rally. It was a test of the trend in January that provided the platform for the run to the February high.
During the recent sell-off, CRO managed to bounce from the support of the February 2020 and Jan 2021 highs at $0.93700 and $0.95100. In my mind, this is the only thing stopping the price from dropping back to the important trendline.
However, that has not happened yet, and at the current price of $0.11756, the market would need to drop by 20% first to test my theory.
Should the CRO price trade down towards the trend line, it could be a good opportunity to add length. Until that time comes, I would prefer to sit this one out and see how the situation develops over the coming days.
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