- Cronos price prediction suggests that a bull trap has been laid for the regular investors.
- On the daily chart, Cronos price is down by 4.50% in the last 24 hours.
Cronos price prediction indicates that big sharks recently laid a trap for the bulls as well as the bears and seemingly attained their target. The CRO price recently made a double-top bearish pattern which is a strong indicator of the upcoming decline in the market.
The win rate for a double-top pattern is said to be 80% according to which many short sellers rely on this pattern to find entry and exit. The double-top pattern is also preferred by bear traders as it often gives a good risk-reward ratio.
Although the recent price action indicates that despite being proven right regarding the many short sellers might end up disappointed by being caught in the trap laid by big shots. The Cronos price recently made a double-top pattern after finding resistance from the $0.062 price point.
The price started moving as expected as it gave a breakdown to the neckline and declined further though after reaching 50 EMA the price is making a grave doji. The wick itself is 5.11% long which went above the previous resistance level which might have caused a few woes for many participants in this trade.Â
The making of the long candle wick suggests that rapid buying and selling activity took place recently which might have lured a few buyers into the trap with the sellers. Seasoned investors might have observed that despite the rapid buying activity the volume stick did not reflect the buyer’s sentiments which is a conventional way to spot a trap.
Cronos Price Prediction: Technical Analysis of Cronos Price On Daily Chart
Source: Cronos /USDT by TradingView
At present, investors may prefer to practice caution though after making the trap, the price is more likely to attain the target according to a few historical analyses. And the price action is also confirming the direction of the trend.
The RSI line is moving near 50.26 points and the 14 SMA provides resistance at around 58.54 points. The RSI line indicates that the price of the Cronos token may take a retest.
Stochastic RSI has almost approached the oversold levels though it suggests that CRO price can see further decline. The present value of stochastic RSI is 0.22 points.
Conclusion
According to the analysis, the price made a gravestone doji pattern which is a bearish indicator. Investors may prefer to practice caution though after making the trap the price is more likely to attain the target it can see a further decline of 4%.
Technical levels
Support – $0.56
Resistance – $0.06
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.
