Cronos (CRO) Price Faces Pullback Risk Despite Nearing March High

Key Takeaways

• Cronos (CRO) is approaching its March high of $0.116.
• The price broke out from a descending resistance trend line.
• Can CRO move to new highs, or has it reached a local top?
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The CRO price has been on a strong run in March, gaining 50% and breaking from a descending resistance trend line.

The rally accelerated after positive CRO news when Crypto.com announced a partnership with Trump Media to develop Exchange-Traded Funds (ETF).

Despite this optimism, signs of weakness are developing in lower time frames that could lead to a short-term retracement. Let’s analyze the charts and determine April’s best course of action.

Why is Cronos Going Up?

The CRO price has increased since falling to a low of $0.068 on Feb. 28, a 70% decline from its cycle high.

On March 6, the CRO price broke out from a 92-day descending resistance trend line, ending its correction.

So far, the upward movement led to a high of $0.116 on March 11. Technical indicators gave bullish signals before the increase and still show positive momentum.

This is especially evident in the Moving Average Convergence/Divergence (MACD), which created a bullish divergence before the breakout (orange).

The Relative Strength Index (RSI) moved outside its oversold territory and is now above 50, both signs of a bullish trend.

The daily time frame suggests the rally will continue. The closest resistance is a Fibonacci and horizontal level at $0.131.

Let’s look at a lower time frame and see if a short-term CRO price retracement is due beforehand.

CRO Reaches Local Top

The short-term six-hour time frame suggests the CRO price will reach a local top soon. Several reasons indicate this will be the case.

Firstly, the wave count shows an A-B-C corrective structure, where CRO is in wave C. The symmetrical triangle in wave B distinguishes the count.

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Another characteristic of the price movement is that waves A and C have the same ratio. This is common in A-B-C structures, reiterating that this is the correct count.

The CRO price has also created a triple top (red icons), which is considered a bearish pattern. Therefore, a decline toward $0.090 is the most likely future outlook.

Alternatively, wave C could extend to 1.61 times the length of wave A, reaching $0.136 and coinciding with the $0.131 resistance area from the daily time frame.

Even in this case, the CRO price would correct afterward, falling toward the $0.090 support.

Correction Incoming

The CRO price performed admirably in March, breaking out from its corrective resistance and reaching a high of $0.115.

However, the short-term outlook suggests the local top is in, and the CRO price will correct in the first week of April.

In case of an extension, CRO could reach the $0.131-$0.136 area before beginning its correction.