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Crypto.com token has been hit by confidence crisis post-FTX collapse
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Massive withdrawals were reported on Crypto.com earlier this month
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The toke trades at the lowest in the year and could fall further
It has been a low moment for crypto firm and exchange-related tokens. A prolonged crypto winter has brought a wave of liquidity crisis for most tokens. The latest FTX exchange collapse sent shock waves across the sector. For an exchange that was once ‘secure,’ investors may have learned the hard way. Crypto.com (CRO/USD) is one cryptocurrency that has suffered in the aftermath.
CRO traded at $0.0638, a yearly low. Despite holding to the level for the past two weeks, the cryptocurrency was trading with falling momentum. That comes even as the crypto exchange saw massive investor outflows, days after the collapse of FTX. Crypto.com created “proof of reserves” dashboards post-FTX saga, but that did not soothe investors.
As a confidence crisis sweeps across the crypto sector, it may take time before CRO recovers to its former self. A technical outlook shows that a new yearly low is on the horizon if buyers do not arrest the falling momentum.
CRO is under pressure at a key consolidation area
The daily chart outlook shows CRO on a downward momentum. Pressure is mounting at $0.06, an area the cryptocurrency has been holding for a while now. The RSI is slightly above the oversold level.
A new bottom for CRO?
A prolonged consolidation at $0.06 gives hope that CRO could initiate a recovery. However, with the price remaining under pressure, the cryptocurrency may touch a new low.
If the price continues lower, $0.057 is the new low to watch. A recovery above $0.075 could ignite a further recovery in the token.
Where to buy CRO
CoinEx
Founded in December 2017, CoinEx is a global and professional cryptocurrency exchange service provider. CoinEx supports multiple languages and are providing global trading services in nearly 100 countries/regions.
Okcoin
Okcoin is a globally licensed exchange with offices in San Francisco, Miami, Malta, Hong Kong, Singapore and Japan. Okcoin’s mission is to help decentralize finance and level the economic playing field for everyone around the world. Serves 190+ countries with over 100K+ active traders and investors.
Crypto exchanges are again coming under pressure. After the collapse of FTX, the question has always been, who is next? It is, of course, a difficult question to answer, but concerns will continue to mount as cryptocurrencies winter ravages.
Crypto.com (CRO/USD) has remained steady even as its sister crypto exchange went under the waters. Never forget the numerous sports sponsorships that gave Crypto.com the limelight. The exchange has also had its fair share of challenges. That includes a community backlash following slashed crypto rewards back in May. The reduced earnings happened amid a ravaging bear market.
Another controversy brewed up for Crypto.com over the weekend. Amid the FTX collapse, massive withdrawals were reported on Crypto.com. The withdrawals started after the exchange CEO Kris Marszalek admitted to accidental transfers of 320,000 ETH worth $400 million. The transfers were made to a public address of a competitor exchange, Gate.io. The lumpsum represented 80% of Crypto.com ETH reserves.
Nonetheless, it appears the transfers were meant for a new cold storage address, according to the CEO’s tweet. The CEO also indicated that the funds were being returned to the exchange’s cold storage.
Even as the situation unfolds, CRO is unscathed. The token is up 12% in the day, despite losing 40% of its value in a week. It indicates that the fears ignited by the news have been abated. But should you buy the token?
CRO price analysis amid intra-day gains
Aside from the latest cryptocurrency news, we need to examine CRO within the larger sector dynamics and price movements. The sector bear market remains, while CRO just touched the lowest in the year.
Source – TradingView
CRO has been trading with high volumes since touching a yearly low of $0.056. The level coincided with oversold conditions for the token.
However, the general market is bearish for CRO. The trend is bearish, with the momentum weakening further since CRO broke below $0.1.
What next for CRO?
CRO recovery may be short-lived, given the weak crypto sentiment and bearish momentum. Sustained recoveries are possible if the token breaks above $0.1. The token is not an attractive buy.
Where to buy CRO
CoinEx
Founded in December 2017, CoinEx is a global and professional cryptocurrency exchange service provider. CoinEx supports multiple languages and are providing global trading services in nearly 100 countries/regions.
Okcoin
Okcoin is a globally licensed exchange with offices in San Francisco, Miami, Malta, Hong Kong, Singapore and Japan. Okcoin’s mission is to help decentralize finance and level the economic playing field for everyone around the world. Serves 190+ countries with over 100K+ active traders and investors.
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Crypto.com has plunged 4% in the past day
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Tokens native to crypto exchanges are also looking bearish amid volumes
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CRO has retested key support with a low momentum
Crypto.com CRO/USD price is hovering around $0.1051 after dropping 4.92% in the past day. The token’s weekly losses currently stand at 11.04%. The bearish turn is not specific to CRO. Several tokens native to crypto exchanges are also facing a sell-off.
BNB token is down 6%, while Huobi token and FTT have lost 3.04% and 11% in the past week. The trend can be linked to low trading activities amid a prolonged market correction. Currently, the crypto market capitalization has dropped 3.7% to $961 billion.
Cronos, formally called crypto.com token, is used for payments, trading, and financial services. The digital asset is backed by Crypto.com, one of the fastest-growing crypto exchanges. CRO remains bearish despite the exchange recently adding support for native assets of an NFT platform.
In the deal, users can trade native tokens of Minted, a Cronos Labs Startup. The entity allows for the listing and purchase of over 10 million NFTs on CRO and Ethereum blockchains. Other fundamental aspects holding back CRO are related to regulatory aspects.
The exchange was recently forced to halt UEFA league sponsorship deals worth $500 million. Crypto.com, which has been known for teaming up with sports companies, cited regulatory concerns. The technical outlook is not looking great either.
CRO retests $0.1054 support amid a bearish momentum
CoinEx
Founded in December 2017, CoinEx is a global and professional cryptocurrency exchange service provider. CoinEx supports multiple languages and are providing global trading services in nearly 100 countries/regions.
Okcoin
Okcoin is a globally licensed exchange with offices in San Francisco, Miami, Malta, Hong Kong, Singapore and Japan. Okcoin’s mission is to help decentralize finance and level the economic playing field for everyone around the world. Serves 190+ countries with over 100K+ active traders and investors.
Source: TradingView
From the daily chart above, CRO has been trading on a trend of lower highs and lower lows. It moved from $0.1557 on August 13 to the current price of $0.1051, signifying a 32% decline. The downward pressure has driven CRO below the 20-day and 50-day moving averages.
At 13, the Stochastic Oscillator is at the oversold zone, showing that the token could be due for a trend reversal. However, a trend reversal remains subject to a change in sentiment. If that is the case, the immediate resistance level will shift to $0.1213.
Concluding thoughts
CRO is facing bearish pressure amid a waning momentum. Although the token has entered the oversold zone, a trend reversal is not visible. The token has retested support and can trade lower if the level does not hold.