Cronos (CRO) has continued to struggle to maintain its recent uptick in price. There were hopes that finally, the coin would manage to cross past $0.5, but despite bulls pushing it to the limit, CRO failed. The coin is now staring at a possibility of a major correction. Here is what to know:
The chart shows a serious RSI divergence that could suggest a pullback is imminent.
CRO was also rejected at $0.5 as upward momentum fizzled out
The coin has lost around 6% over the last 24 hours, with more to come.
Data Source: Tradingview
Cronos (CRO) – Why a 15% is plausible
After a steady rise over the last two weeks, off-late CRO has been displaying several bearish technical signals. First, it seems the coin’s upside at the moment is capped at $0.48. In fact, CRO has tried to break above the $0.5 mark five times and has failed.
It is clear that the coin has no upward momentum right now, and the only way is down. The RSI divergence also suggests that a pullback is going to happen at any time. We expect CRO to retreat towards $0.43 in the days ahead as it tries to generate demand.
If bulls are not able to push the price back up again, CRO will bottom at around $0.41 or thereabout. However, if the coin can somehow manage to break the $0.5 barrier, then this analysis will become null and void. We do not see this happening though in the days ahead.
Why CRO has struggled past $0.5
So far, the $0.5 mark has proved to be the most difficult overhead resistance for CRO. It is likely that this is basically a psychological barrier.
Since the coin has failed so many times before to smash past it, most traders would rather take a profit at around $0.5 instead of facing any serious upside risks.