Journalist
Posted:
- Crypto.com dropped its lawsuit against the SEC on the same day its CEO met with the new president-elect.
- The lack of demand in the spot market in recent days could be a sign of future losses.
Cronos [CRO] the native token of the Cronos chain and one of Crypto.com’s products consolidated below the $0.2 mark last month.
Before November, the token was in a prolonged downtrend and had fallen below the $0.083 support.
Kris Marszalek, CEO of Crypto.com, had said this traveled to Florida to meet Trump on December 17, which led to the token gaining 16% within hours.
On the same day, the exchange also voluntarily rejected the application court case against the SEC as it planned to work with the new administration on a regulatory framework for the industry.
Should you buy or sell CRO crypto?
Source: CRO/USDT on TradingView
Within a week, the CRO had risen 210% after the US presidential election results were announced, skyrocketing to the $0.2 mark. Since then, it has formed a range between $0.17 and $0.2.
Trading volume during the rally was high and has fallen during the consolidation.
This was not unusual. The token probably needed more time before moving higher. The technical indicators remained bullish. The CMF stood at +0.23, signaling strong capital inflows into the market.
Meanwhile, the RSI remained above neutral 50, but did not yet form a divergence.
A revision to the $0.16-$0.17 region would provide a buying opportunity. A breakout above $0.2 would be ideal for investors, but traders can use a test of this resistance to take profits.
Short-term sentiment is not always bullish
AMBCrypto noted that certain trading sessions saw a huge increase in Open Interest over the past week.
These were accompanied by high trading volumes such as on the 12th and the 17th, reflected in the price chart and Coinalyze data above.
Read Cronos’ [CRO] Price forecast 2024-25
The OI tended to fade after these strong moves, a sign that speculators flooded in during quick gains but also quickly exited.
The spot CVD has also been in a downtrend, showing sustained selling in recent days.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer