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Cronos (CRO) Bounces 25% – Key Levels to Watch for a Full Comeback

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Key Takeaways
  • Descending wedge breakout potential
  • RSI bullish divergence signals reversal potential
  • Key Fibonacci resistance at $0.1326

Cronos (CRO) has recently experienced significant volatility, reflected in its sharp price movements across higher and lower time frames.

This analysis delves into the recent trends, Elliott Wave counts, and key technical indicators to provide a comprehensive outlook on CRO’s price dynamics.

CRO Price Analysis

The 4-hour chart reveals a descending wedge formation, with CRO completing wave (e) of a larger corrective structure.

This sharp decline brought the price below the 0.786 Fibonacci retracement to a low of $0.083, signaling the potential exhaustion of bearish momentum.

The Relative Strength Index (RSI) exhibits a bullish divergence, indicating that the recent downtrend might be losing strength and setting the stage for a possible reversal.

CRO price analysis
CROUSD descending triangle breakout | Credit: Nikola Lazic/TradingView 

Price action has consistently shown lower highs and lower lows within the descending triangle, a typical pattern preceding bullish breakouts. However, we saw a bearish one in this case, leading to a 38% decline since Friday. 

The convergence of descending trendlines and the RSI rebound from oversold territory suggest that CRO could prepare for an upward move. A 25% recovery followed, and it regained $0.10, where it currently trades. 

A breakout above the $0.1065 level, aligned with prior horizontal support, would confirm this bullish bias. The next significant resistance is the 0.618 Fibonacci retracement level at $0.1326.

CRO Price Prediction

On the 1-hour chart, CRO displays a clear Elliott Wave structure, with wave (i) and corrective wave (ii) potentially ahead. If a higher low is established on the retracement, there will be a high chance of wave (iii) development.

It could propel CRO towards the $0.1150-$0.1250 range, where overhead resistance from prior trendlines converges if confirmed.

CRO price prediction
CROUSD recovery seen | Credit: Nikola Lazic/TradingView 

The bullish scenario assumes wave (iii) will extend impulsively, breaking through $0.1065 and targeting the descending wedge’s upper boundary.

A corrective wave (iv) could follow, finding support around $0.1100 before the final wave (v) pushes higher towards $0.1326. 

However, failure to sustain above the $0.12 area may invalidate this bullish count, leading to a retest of support at $0.0950 and potentially a fall to $0.0709 if bearish momentum resumes.

Key Levels to Watch

  • Immediate Resistance: $0.1065 (horizontal support turned resistance)
  • Key Resistance: $0.1326 (0.618 Fibonacci retracement)
  • Immediate Support: $0.0950 (local horizontal support)
  • Critical Support: $0.0709 (1.0 Fibonacci retracement)
  • Short-Term Target for Wave (v): Above $0.1250 if bullish momentum sustains
  • Invalidation Zone: Below $0.0950, signaling further downside potential
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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