Early this month, the Cronos price started an aggressive bearish trend that has seen its value halve from $0.12 to the current $0.06. The drop was a result of the collapse of the FTX crypto exchange, which dragged almost the entire cryptocurrency industry into a bearish trend. Following the crash, investors also went into a sell-off mode, which further dropped the value of Cronos and other cryptocurrencies. Its significant correlation with the industry also contributed to its 50 per cent price decrease.
However, unlike other cryptocurrency projects, which are now recovering, Cronos has continued to struggle in the markets, with the past few trading sessions seeing it trade in a horizontal trend. Today, the struggle of the Cronos crypto also looks to be continuing, with its price falling by almost 3 per cent in the early hours of the session.
One of the reasons for the recent price drop, days after the impact of the FTX collapse faded, has been due to its correlation with the industry. For instance, the recent warning by the Genesis crypto brokerage that it might file for bankruptcy has further put the industry under pressure.
In response, most investors have resulted in selling their digital assets, which in turn is driving the crypto market downwards. Cronos, on the hand, despite not having direct fundamental factors that might affect its price, is mirroring the industry’s trend, partly due to correlation.
The chart below shows that the past few trading sessions have been a horizontal trend. However, yesterday’s and today’s trading sessions have shown a likelihood that we might be entering into another bearish trend.
Therefore, there is a high likelihood that we might be at the start of the next bearish push, which will see Cronos dropping below the $0.055 price level in the next few trading sessions. There is even a high likelihood that we might see the crypto hitting and breaking the recent price monthly price low of $0.053. However, a trade above the $0.070 price level will invalidate by bearish analysis.
This post was last modified on Nov 25, 2022, 11:43 GMT 11:43