- Summary:
- In this CRO price prediction, we explain why Cronos has been in a strong bearish trend and what to expect in the near term.
The CRO price has tumbled recently as worried investors dump their holdings across all asset classes. Cronos has fallen to $0.1865, which is about 10% below the highest level this week. Its total value locked has tumbled to $1.7 billion, making it the 7th biggest blockchain globally. Cronos is about 80% below the highest level on record at the current price.
The ongoing cryptocurrency sell-off has not left behind CRO price. As with other coins, investors have sold their coins after the dramatic collapse of Terra LUNA that happened last week. This collapse also affected the platform’s ecosystem, including Anchor Protocol and Lido.
Therefore, many investors have both exited CRO and its platforms. For example, the TVL of VVS Finance has declined by 30% in the past 30 days. Tectonic’s TVL has dropped by 35%, while MM Finance and MM Optimizer has crashed by over 70%. In total, the platform’s TVL has declined from over $4 billion to about $1.7 billion.
Cronos also declined because of the ongoing sell-off in stocks. Most equities tumbled sharply on Wednesday after the weak earnings by Target and Walmart. The Dow Jones and Nasdaq 100 declined by more than 3%. In addition, we have seen a close correlation between cryptocurrencies and stocks in the past few months.
Most importantly, investors are avoiding betting against the Federal Reserve since the bank has signalled that it will do whatever it takes to fight inflation.
CRO price prediction
The Cronos price has tumbled sharply in the past few months. The sell-off continued after the coin declined below the important support level at $0.3275, which was the lowest level in January this year. It was also the lowest side of the descending triangle pattern. Now, it has formed a bearish flag pattern, which is usually a sell signal. In addition, its RSI has moved below the oversold level.
Therefore, the sell-off will likely continue as sellers target last week’s low of $0.1583. A drop below this support will be a victory for bears. As such, the next key support level will be at $0.1400. The stop for this trade will be at $0.2075.
