Crypto.com price risks 8% decline as support shrinks

• Crypto.com price is on the verge of validating a descending triangle breakout.
• CRO risks falling deeper into losses due to the absence of solid support areas.
• Bears hold the reins while the CRO whales increase the selling party.

Crypto.com price is down nearly 2% as bears leave no stone unturned on Friday across the crypto market. CRO is likely to end its extended consolidation period with more losses – possibly below $0.1000.

However, the technical picture shows that another retracement might not be the worst. If anything, the Crypto.com price could use the opportunity to attract investors who are already on the sidelines before reversing the trend.

Considering the possibility of an 8% dip to $0.0994

After the Crypto.com price topped $0.1250 in September, support was formed at $0.1080. Thereafter, recovery movements weakened, culminating in a higher downtrend. These two price moves formed a descending triangle that could see CRO plunge 8% to $0.0994.

A descending triangle is a bearish chart pattern characterized by lower highs and a lower support level. The falling trend line indicates that sellers are growing stronger and a breakout is imminent. Although the Crypto.com price is consolidating with a bearish bias, traders need to wait for a breakout below the horizontal support level.

CRO/USD four-hour chart

Crypto.com price may validate the forecasted downtrend in the short term based on insights from DMI (Directional Movement Index) and OBV (On Balance Volume). The former reveals a negative signal, with the divergence between –DI and +DI still increasing. Likewise, traders seem to be increasing their activity as the OBV slips further below the 1 billion mark.

Whales increase pressure on Crypto.com price

Large volume holders have sold CRO even when the price falls. According to Supply Distribution, the chain metric of Santiment addresses with between 10,000 to 100,000 tokens now stands at 443 after a sharp drop from 476 on September 24. As for the addresses with between 1 and 10 million tokens, the drop to 1018 has been gradual over the past three months after reaching a peak of 1128 on July 12.

CRO Supply distribution

The overhead pressure tends to increase as whales unload their sacks. The selling round also shows that Crypto.com is far from touching the floor price, and the losses are likely to continue.

Crypto.com IOMAP model

The lack of solid support areas is driving the bearish narrative, as observed from the IOMAP on-chain metric. On the other hand, massive resistance levels at $0.1098 and $0.1124 will continue to limit price movements.

The Crypto.com price must gather enough liquidity to climb the ladder because investors who bought at these levels may choose to sell at their breakeven points, thus contributing to the downward force.