Following an impressive 137.39% surge in value over the course of a month, Cronos (CRO) is now showing signs of a possible downturn. Recent data indicates a 4.78% weekly loss, hinting at a shift in market sentiment.
Despite a 3.03% recovery in the past 24 hours as reported by CryptoCrypto, concerns persist due to ongoing selling pressure from large investors which could jeopardize the short-term outlook for CRO and potentially lead to losses for smaller traders.
Increasing Bearish Sentiment Raises Concerns for CRO’s Future
Current insights from IntoTheBlock suggest a bearish bias in the Cronos market, indicating possible downward pressure on its price.
With 144 bulls versus 115 bears over the past week, while the difference is slight, broader market conditions raise alarms about potential declines.
The dominance of whales in the CRO market, as highlighted by CryptoCrypto, exacerbates volatility, leaving smaller investors exposed to abrupt price fluctuations.
Presence of Whales Raises Downside Risks for CRO
Deeper analysis exposes that three highly active whale-controlled addresses hold 93% of the circulating CRO supply. As of now, these whales own 93.13% of the total supply, distributed unevenly at 1.84%, 5.03%, and a significant 86.24%.
Their extensive involvement, indicated by over 300 transactions within a specific period, poses a substantial threat to the stability of CRO’s price.
Moreover, a noticeable surge in CRO transaction volume, with 73.16 million CRO tokens traded in the last 24 hours, adds to the concerns regarding the possible future downtrend for CRO.
What’s Driving the Rise in CRO Price?
The recent upswing in CRO’s value is primarily attributed to derivative traders speculating on its upward trajectory, resulting in a corresponding price increase.
A long-to-short ratio of 1.0912 indicates a prevailing bullish sentiment, with a higher number of long positions contributing to the price rally.
However, any escalation in whale activity could potentially reverse this trend, nullifying the positive impact of derivative traders.