Cronos (CRO) relief rally rose above $0.07 on Monday, but buyers are struggling to sustain the higher levels. Since mid-November, Cronos price has been consolidating above $0.06 breaking out of the consolidation on December 5. As such, investors are advised to be careful about rallies that begin during the weekend when traditional financial markets are closed, as it could be a possible trap.
Reasons For Cronos Recent Rally
CRO defied the market conditions initiating a recovery on Sunday and jumping ahead of Bitcoin and Ethereum in Monday’s trade. The exchange token recorded 17% gains from $0.064 to record highs above $0.0745. Meanwhile, Bitcoin (BTC) was up 1.7% on the day while Ethereum rose 3%.
The asset has since retreated to $0.066 frustrating the bulls’ efforts to rise from the ashes of a crypto market crash occasioned by the FTX/SBF/Alameda debacle that made it plummet to $0.056 in November.
The Chief Executive Officer of Crypto.com Kris Marszalek moved to ease investor tensions assuring them that the Singapore-based cryptocurrency exchange was financially healthy, dismissing speculations of liquidity issues after the FTX collapse made the price of the firm’s CRO token plunge.
CRO’s trading volume soared more than 1000% on Monday making it attract strong bullish sentiments. Cronos has received more than $100 million in inflows since Sunday, making it rise higher on different rankings and indices. The CRO price is up 3.89% in the past seven days.
The ongoing FIFA World Cup 2022 competition in Qatar is entering the quarter-finals stage. The global viewership has reached record highs at 3.75 billion viewers by Sunday, November 4, which is more than half of the global population tuned in to world football’s ultimate competition.
Note that Crypto.com is running a number of ads and campaigns that are benefitting the crypto trading platform. In turn, the sharp increase in the television audience is driving new investors to the platform’s native token Cronos (CRO), resulting in its price growth.
In addition, Cronos’ unique on-chain addresses continue to rise steadily, despite the bearish market conditions. According to data from Cronoscan, the number of unique addresses on the network has grown by approximately 98% from 512, 017 addresses at the beginning of April to the current figure of around 1,017,440, growing by nearly 800 addresses each day.
However, the sudden spike in Cronos price could be temporary as crypto prices are expected to retract given the prevailing bearish conditions in the market. As such, market participants are advised to exercise caution before placing entry positions on Cronos as it may have already formed a local peak.
Cronos Price Fake Out Could Nurture A Plunge To $0.05
The CRO price has painted a pessimistic picture on the daily chart. This technical setup shows that CRO has escaped from a descending triangle, a suggestion that the token may have been ready for a run-up.
The latest rally had pushed Cronos price to its new local high around $0.0745. This setup gave an illusion of an uptrend, but things could go awry if CRO produced a daily candlestick close below the descending trendline (hypotenuse) of the triangle at $0.0637, taking it back within the confines of the technical chart. This development could flip the area inside the triangle into a liquidity zone if what happened on November 21 is anything to go by.
Any attempts to push Cronos price up could almost always be stifled by the retest of the liquidity zone. As such, the recent rally that took CRO price 28% above its recent swing low of around $0.0578 could be temporary.
A daily candlestick close below the triangle’s support line (X-axis) at $0.0625 could trigger CRO sellers to start another leg down. In this case, Cronos could revisit the $0.06 psychological level, and in dire circumstances, the price could slide lower toward the pessimistic target of the governing chart pattern at $0.0513. Such a move would present a 23% drop from the current price.
CRO/USD Daily Chart
Supporting this grim outlook for CRO was the SuperTrend indicator which reversed from positive to negative on November 7 and flipped above the price. Note that as long as this indicator rests above the price, Cronos’ negative momentum remains.
In addition, the moving averages and Relative Strength Index (RSI) were turning down, suggesting that the price action favors the downside. The price strength at 40 showed that there were more CRO sellers than buyers who were determined to pull the price lower. Moreover, the position of the Moving Average Convergence Divergence (MACD) indicator below the zero line in the negative region, added credence to CRO’s downward trajectory.
Looking across the fence, the MACD’s upward movement while still above the signal line provided a sense of hope to bulls. It showed that if the recent rally is restarted, the price could move higher.
As such, the gloomy forecast could be invalidated if a daily candlestick close is recorded above $0.07 as earlier analyzed by InsideBitcoins. This development would produce a higher high, signaling a shift in odds favoring the buyers. In such a situation, Cronos price could continue heading higher and could reach the $0.0745 supply level or the range high at $0.0781.
Promising Tokens In Presale
The bearish conditions in the market are likely to continue in the near term. The FTX contagion continues and there is no telling how far the effects will reach. The macro climate continues to increase the headwinds leaving crypto investors with less profitable projects to pump their capital into.
As such, there are some interesting tokens currently on presale with the potential to increase investors’ returns once they are listed on exchanges. An example of such crypto with an optimistic outlook is the IMPT token, whose presale is ongoing. The token has so far raised $14 million since its token sale began at impt.io on October 3rd, and its first crypto exchange listings on LBank, Changelly Pro and Uniswap are now scheduled for December 14th. As a bonus, the Impact Token team is running a giveaway promo of 100K. Hurry up and take part in this giveaway so that you don’t miss out on an exciting opportunity.
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Similarly, Dash 2 Trade comes in as well among these promising tokens. This platform enables the creation and testing of trading strategies for traders and investors to make informed market decisions. Dash 2 Trade is designed to take your crypto trading to the next level by providing data-based crypto signals. The team behind D2T has so far raised $8.3 million (a $200,000 surge over the last 24 hours) with over 85% of the tokens sold in stage 3 of the presale. Don’t miss out on this opportunity to buy D2T at a discounted price as the price is set to increase to $0.0533 in stage 4 of the presale.
With a trading intelligence platform like Dash, looming disasters like the collapse of FTX can be spotted before they occur and help traders and investors to secure their assets and make market-beating returns.
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