- Crypto.com slides to descending triangle support as a breakdown to $0.12 looms.
- The on-chain analysis places the most robust support between $0.137 and $0.14.
Crypto.com is still retracing from the highs traded in August at $0.192. A higher low pattern has been forming below a descending trendline. On the downside, support at $0.14 played a crucial role in ensuring that losses are mitigated. Attempts to resume the uptrend has only resulted in lock-step trading.
WalletConnect adds support for CRO DeFi Wallet
As the Decentralized finance ecosystem seeks mainstream acceptance, adoption is a priority for projects in the sector. For this reason, support on multiple platforms does not only increases their utility but also exposes them to a broader audience.
Crypto.com announced on Wednesday via Twitter that WalletConnect had integrated support for CRO DeFi Wallet for mobile. Besides that, WalletConnect announced a new update called v1.3.0. The update brings onboard features such as “copy to clipboard” and a new “mobile link interface.
Crypto.com breakdown seems imminent
The DeFi token recently suffered a blow due to the rejection at the 100-day Simple Moving Average as well as the hypotenuse of the descending triangle pattern. On the downside, the token is holding at that triangle support. If the price breaks below this technical pattern, the bearish outlook will gain weight, shoving CRO in a downward trajectory.
The bearish narrative is emphasized by the Relative Strength Index (RSI) as it slides towards the oversold. However, the low trading volume at the moment hints that price action will not be rapid, at least before the breakout comes into the picture. Further down, support is expected at the 200-day moving average near $0.12.
CRO/USD daily chart
IntoTheBlock’s IOMAP model shows that the path to recovery is not as congested. The only challenging resistance zone lies between $0.155 and $0.16. Previously, approximately 1,300 addresses bought about 230 million CRO. If this zone is bypassed, price action may continue to $0.17.
On the downside, enormous support stands behind the cryptocurrency, running from $0.137 to $0.14. Here, 295 addresses bought roughly 3.4 billion CRO. It is doubtful that the expected declines will slice through this zone.
CRO IOMAP chart
The “Daily New Addresses” metric by IntoTheBlock displays a gradual increase in the number of new addresses joining the network. These addresses shot up from 186 recorded on October 10 to 228 on October 13. Persistent growth prints a bullish picture for Crypto.com in the future. In other words, new addresses bring in liquidity, which supports the growth in CRO’s value and leads to network growth in general.
CRO new addresses chart
Looking at the other side of the fence
Although CRO is hanging at the edge of a cliff due to the formation of a descending triangle pattern, support highlighted by the IOMAP is strong enough to invalidate the bearish outlook to $0.12. On the other hand, new addresses joining the network are likely to increase liquidity for the token; hence recovery could be in the offing. If CRO/USD resumes the uptrend above the 50-day SMA, upward price action will aim for $0.18.