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Crypto: Cronos (CRO) ascent in sight? Analysis of April 1, 2024

Wed 01 May 2024 ▪ 5 min of reading ▪ by Family Trading Partnership
Investissement

Cronos has risen from $0.050 to $0.18 since October 2023. Let’s analyze together the future prospects for the CRO price.

Logo Cronos au centre d’une explosion entre un ours rouge et un taureau bleu enragés.

Cronos (CRO) Situation

After hitting a low at $0.05, the Cronos price soared by more than 150%, rapidly reaching $0.12. It was at this level that the CRO price consolidated, dropping to $0.08 before bouncing back and continuing its upward trajectory. Indeed, a few days later, Cronos reached $0.18, surpassing its previous peak. Following this second upward wave, Cronos marked a new low just below $0.12, a level it seems to be challenging at the time of this writing.

Indeed, Bitcoin’s decline has pulled the CRO price down, compromising its support. Although its underlying trend remains bullish, breaking this support could jeopardize it. The fact that Cronos has pushed its 50-day moving average downward continues to cast doubt on the continuation of the bullish trend. As for the momentum of this same trend, we observe that it continues to diminish, which indicates a decline in interest towards the cryptocurrency.

CRO/USD Daily Chart
CRO/USD Daily Chart

The current technical analysis has been conducted in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. He is now a trainer at Family Trading, a community of thousands of independent traders active since 2017. Here you’ll find Live sessions, educational content, and mutual support related to financial markets in a professional and warm atmosphere.

Focus on Derivatives (CROUSDT)

The open interest in CROUSDT contracts has followed its price timidly. This demonstrates a rather subdued speculative interest in the cryptocurrency. However, this subtle correlation, coupled with a majority of short position liquidations, suggests that positions are primarily oriented towards buying. Regarding the funding rates, we can see that they are relatively neutral, indicating that these contracts are in line with the CRO. This may imply a good balance between buyers and sellers on perpetual contracts associated with Cronos.

CROUSDT Open Interest / Liquidations & Funding rate
CROUSDT Open Interest / Liquidations & Funding rate

The liquidation heatmap of the last three months shows that CRO/USDT reached a subtle liquidation zone within the price range around $0.13 and $0.14. This area seems to have sparked seller interest. Today, the most significant zones above the price first appear around $0.16, and then higher, beyond $0.17. Below the current CRO price, the subtle zone below $0.11 is noticeable; otherwise, one must also consider the $0.095 to $0.09 range. If the market approaches these levels, we may witness a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. Hence, these zones represent major points of interest for investors.

CROUSDT Liquidation Heatmap (3 months)
CROUSDT Liquidation Heatmap (3 months)

Possible Scenarios for Cronos (CRO) Price

  • As long as Bitcoin’s price manages to maintain itself above $0.12, we can anticipate a breakout of $0.14. The next resistance to consider, if the bullish movement continues, would be $0.16 and possibly the CRO’s last peak at $0.18. At this stage, it would represent an increase of more than 50%.
  • If Bitcoin’s price does not hold above $0.12, we could anticipate buyer interest supporting the value zone around $0.10. The next level to consider, if the bearish movement continues, would be around $0.09 or $0.08. At this stage, it would represent a drop close to – 33%.

Conclusion

Despite having demonstrated renewed interest around $0.12, the CRO price appears fragile. Indeed, even though its underlying trend remains bullish, the negative influence of Bitcoin’s decline and unfavorable technical movements suggest an uncertain future for the cryptocurrency. Therefore, it will be crucial to closely observe the price reaction at various key levels to confirm or refute the current hypotheses. It is also important to remain cautious of potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria, and the price of cryptocurrencies can also move rapidly due to other more fundamental factors.

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Family Trading avatar
Family Trading

Family Trading est une Communauté de traders a compte propre active depuis 2017 offrant Lives, contenus éducatifs et entraides autour des marchés financiers dont celui des cryptomonnaies avec à ses côtés Elie FT, investisseur et trader de passion sur le marché crypto.

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