Following a strong month-long surge that boosted Cronos [CRO] by an impressive 137.39%, there are now signs of a reversal in momentum. The asset recently saw a weekly decline of 4.78%, indicating a potential shift in trend.
Despite a 3.03% price recovery reported by CryptoCrypto in the past 24 hours due to derivative traders, persistent whale activity continues to raise concerns about the near future of CRO, posing risks for smaller investors.
Bearish Sentiment Grows, Pointing to Downside for CRO
Current data from IntoTheBlock reveals a bearish inclination in the CRO market, hinting at downward pressure on its price.
Over the last seven days, there have been 144 bulls versus 115 bears, indicating a slight potential for decline. However, overall market conditions raise further concerns.
The market is significantly controlled by whales, as highlighted by CryptoCrypto. This dominance increases volatility, leaving smaller holders exposed to sudden price fluctuations.
Whales Hold Authority in CRO, Elevating Downside Risks
Deeper analysis reveals that three highly active whale addresses manage over 93% of the circulating CRO supply, with holdings distributed as follows: 1.84%, 5.03%, and a substantial 86.24%.
Their extensive activity, demonstrated by over 300 transactions within a specific period, poses a notable threat to CRO’s price stability.
Furthermore, there has been a notable increase in CRO transaction volume, with 73.16 million CROs traded in the last 24 hours.
This surge in activity, coupled with the presence of whales and indications of bearish control in the market, suggests that CRO may relinquish its recent gains and confront potential declines.
Reasons Behind CRO’s Upward Movement
The recent uptrend in CRO is largely fueled by derivative traders speculating on the asset’s upward trajectory, which has influenced the price positively.
With a long-to-short ratio of 1.0912 affirming bullish dominance, increased long positions are pushing the price upwards.
However, if whale activity escalates, CRO could change course, nullifying the bullish momentum generated by derivative traders.