Cronos (CRO) drops drastically from its immediate resistance!
- Susan G. Hall
- on Aug 23, 2022
Cronos has become a new participant in the cryptocurrency exchange syndicate that offers trading, investing, staking, storage wallets, NFTs and many more assets to trade. Cronos focused on creating its own blockchain protocol with the native cryptocurrency named CRO. It could have used public exchange protocols already developed and functioning on the markets. The original blockchain was called Crypto.com, later changed to Cronos to differentiate the company from its blockchain.
Cronon’s has a market capitalization of $3,231,982,717, with an 83% circulating supply of CRO tokens. The CRO cryptocurrency is used to pay Cronos blockchain transaction fees and allows holders to earn staking rewards in exchange for becoming a Cronos validation. CRO is ranked 25th in the crypto tally. FTX, Uniswap and Binance Coin are the competitors for the growth prospects of the CRO token. Will the CRO be able to maintain and improve its position among these tough competitors? Click here to know!
The CRO token is following the market trend in profit booking and testing its historical trend line. The bulls showed tremendous determination to defend their support trend and provide a pivot point to retry in a positive direction. The technical outlook indicates the formation of a consolidation zone for Cronos.
The CRO token suffered a massive decline in just four days after failing to make a positive breakout of its consolidation near the $0.158 level during the third week of August 2022. Due to a double-digit drop, CRO reached $0.122, a support level based on its positive trendline. The RSI and MACD indicator indicate the negative trend developed with the price outlook moving towards negative consolidation. The CRO needs to trade above $0.14 to mark a positive advance in its price action.
Cronos buying sentiment refining from this trend line would be the third case in the last three months. Failure to sustain this level could create a negative outlook for CRO token holders with a single hold to reignite the buying sentiment tied to the $0.10 level. The RSI improved decently from 30 to 39 as this token gained marginal price from the August 19th lows.
The recent fall of Cronos has created a negative impact on its short and long term outlook. The previous week’s massive red candle formation weighs around 16%, which engulfed the gains made in August 2022 and the last week of July 2022. A continuation of a negative candle formation would hit buying sentiment even further , creating a cascading effect.
Wicking on the lower end weekly candles confirms increased buying activity near this price range. Despite a very low probability of buying action helping to overcome the overall negative CRO sentiment, the current value sits right in the middle of the resistance and support levels.