Over the past fortnight, Cronos [CRO] has showcased impressive growth, experiencing a remarkable 230% surge in just one week, before undergoing a recent pullback. This surge indicated a strong bullish sentiment with upward targets at $0.27 and $0.33.
An analysis of the current market scenario suggests a potential 15% to 18% downturn in Cronos’ price in the near future, as indicated by the liquidation heatmap. The question looming now is whether buyers will seize this opportunity in the upcoming days, or if the market will witness a shallow retracement without a significant drop.
CRO Witnessing a 28% Decline from Recent Peaks
By examining the Fibonacci retracement levels based on the movement from $0.0705 to $0.2329 in November, a notable surge in trading volume was observed, escalating from 2.7 million CRO on November 5th to 50.27 million CRO on November 6th.
On November 11th, Coinbase recorded a staggering trading volume of 308.16 million CRO in a single day, paralleling the sharp rise in the value of the Cronos network token.
Since March, there has been a downward trend in Cronos’ crypto performance, with a consolidation period observed in July and August. The recent upswing originated from the lower bounds of this consolidation phase, highlighted in purple.
The descent from $0.2329 was accompanied by substantial selling pressure, hindering the On-Balance Volume (OBV) from showing any positive signs.
A probable scenario could see Cronos retracing further towards $0.132 and $0.105, potentially paving the way for a lucrative buying opportunity.
Forecasting a 16% Price Drop for Cronos
Further analysis by CryptoCrypto indicates that the liquidation heatmap from the previous month unveils crucial support and resistance levels for CRO, with $0.142 and $0.2 serving as key liquidation clusters.
Notably, a move towards $0.142 might initiate an upward rebound. With CRO recently breaking out of a four-month consolidation phase on substantial trading volume, it appears more likely to witness further gains rather than reverting back to the previous range.
Disclaimer: The opinions shared in this content do not amount to financial, investment, trading, or any other form of advice and are solely the viewpoint of the writer.