As crypto assets recover from the Crypto Winter 2022, Cronos (CRO) posted massive gains in 24 hours. Chronos trading volume increased by 301.28%, showing that the coin has attracted more commercial activity.
The price of Cronos jumped over 9% in 24 hours, continuing its impressive price action through 2023. crypto.
What is behind this rally?
Cronos is an open-source blockchain that facilitates Crypto.com’s Pay mobile app payments. However, the Cronos blockchain, which is compatible with Ethereum, has updated and redesigned the project’s focus to integrate Web 3 and NFT.
The asset price benefited from increased adoption, as evidenced by the more than 100% spike in business activity. The Cronos network now supports activities on the Metaverse. NFTs and games are among the new projects adopted to keep up with modern trends.
The network also maintained its main objective of provide decentralized funding (Challenge). Crypto users can conduct financial transactions on the blockchain quickly and anonymously. Cronos has built up a solid clientele that interacts on social media channels.
The launch of Chronos chain, compatible with Ethereum, brought the project to the forefront. The Cronos chain allows the migration of DApps built on the Ethereum blockchain and supports the Inter-Blockchain Communications (IBC) protocol. The IBC protocol allows Cronos to connect to the cosmos ecosystem and interact with its DApps.
Cronos (CRO) Price Prediction What to Expect
CRO is gaining in the market today, currently trading at $0.0806. The support levels for CRO are $0.070164, $0.071703, and $0.072919, while the resistance levels are $0.075674, $0.077213, and $0.078429.
Cronos is currently trading above its 50 days Simple Moving Average (SMA) but is below its 200-day SMA. This implies that this price action could work as a short-lived rally. On the price chart, the candles are in a ascending pattern. However, today’s candle has a long top wick implying that bears are trying to push prices down.
The Relative Strength Index (RSI) is bullish and in the overbought zone at 79.27. It represents the massive spike in trading volume at Cronos. However, the RSI might get back into the channel in the next few days.
The Moving average convergence/divergence (MACD is above its signal line, which is also a buy signal. But, the MACD is showing minimal divergence, implying that there might be a short-term trend reversal. Cronos will likely continue to trade in the green for a few days before pulling back slightly.
A conservative approach trading the asset might be the best option. Most importantly, understand that a digital asset that declines in value by 50% will need to recover 100% to return to its previous value. This feat is difficult to accomplish for altcoins and memecoins.
Featured image from Pixabay and graphic from TradingView.com