The Cronos (CRO) price is trading above a long-term support area but has not shown any bullish reversal signs yet. The wave count supports a bounce.
The Cronos token is the native token of the Crypto.com cryptocurrency exchange, founded by Kris Marszalek. It uses the proof-of-stake consensus mechanism and is built on the Cosmos SDK.
The Cronos coin price has fallen since reaching an all-time high of $0.955 on Nov. 2021. The downward movement led to a low of $0.053 in Nov. 2022.
The ensuing bounce validated the $0.060 area as support. This is a crucial area since it initially acted as resistance in Jan 2020 (red icon) before turning to support in Dec. of the same year (green icons).
However, the bounce has yet to lead to a substantial upward movement and created a neutral candlestick with long wicks on each side. Moreover, the weekly RSI is falling and has not generated any bullish divergence.
As a result, the CRO token price trend is unclear when looking at the weekly time frame.
CRO Price Wave Count Support Bounce
The wave count for the CRO token indicates that the price completed a five-wave downward movement measuring from the all-time high (white). In it, wave three was extended (highlighted). The sub-wave count is given in black.
If the count is correct, a substantial bounce is expected, which would take the price at least to the $0.115 area.
While there are no clear bullish reversal signs, it is worth mentioning that the weekly RSI is nearly at an all-time low. It is at the same level as in Dec. 2020 (green circle), when the upward movement that led to the all-time high began.
A breakdown and weekly close below the $0.060 support area would invalidate this bullish CRO price forecast.
CRO Price Fails to Maintain Movement
Finally, the technical analysis from the daily chart also provides a mixed reading.
On the bullish side, the CRO price created a bullish candlestick on Nov. 14 and created a higher low ten days later.
On the bearish side, it created a very long upper wick on Dec. 5 (red icon), validating the $0.075 area as resistance in the process. As a result, the direction of the future trend will be determined by whether the CRO price breaks down from the $0.060 long-term support area.
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