The native token of the Cronos chain, known as Cronos [CRO] and a key product of Crypto.com, has been trading below the $0.2 level in recent weeks.
Prior to November, the token had been in a prolonged downward trend and had dropped below the crucial $0.083 support level.
Following Crypto.com’s CEO Kris Marszalek meeting with Trump in Florida on December 17th, the token experienced a sudden 16% spike.
On the same day, the exchange decided to drop its lawsuit against the SEC voluntarily, signaling its intent to collaborate with the incoming administration to establish a regulatory framework for the crypto industry.
Is it time to consider buying or selling CRO crypto?
Within a week of the U.S. Presidential election results, CRO surged by 210%, reaching the $0.2 mark. Since then, it has been trading within a range of $0.17 to $0.2.
The trading volume during the rally was substantial but has decreased during the consolidating phase.
This pattern was expected, as the token needed time before attempting another upsurge. The technical indicators remained positive, with the CMF indicating a strong capital inflow to the market at +0.23.
Meanwhile, the RSI stayed above the neutral 50 level but did not show any divergence yet.
A potential buying opportunity may arise if the price revisits the $0.16-$0.17 range. Investors would ideally look for a breakout above $0.2, while traders could consider taking profits if the resistance is tested.
Short-term market sentiment shows a lack of consistent bullishness
Notably, CryptoCrypto observed that certain trading sessions in the past week witnessed a significant increase in Open Interest, coinciding with high trading volumes on the 12th and 17th, as evident from the price chart and Coinalyze data.
However, the Open Interest tended to diminish following these rapid movements, indicating that speculators entered the market during quick gains but exited swiftly as well.
The spot CVD showed a continuing downtrend, reflecting sustained selling activity over recent days.
Disclaimer: The views expressed here are not intended as financial advice and represent solely the author’s perspective.