CRO attains new local low but are there signs of recovery in sight

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Two weeks have already passed since CRO bot­tomed out at $0.167 on 12 May, in line with the over­all cryp­to market’s per­for­mance. Fast for­ward more than 2 weeks and CRO has already sought more downside.

CRO dropped as low as $0.163 on Thurs­day, thus set­ting a new 2022 low. It has attempt­ed a slight recov­ery since then and trad­ed at $0.173 at press time. The big ques­tion now, is whether CRO will con­tin­ue push­ing to new 2022 lows or recov­er from its cur­rent lev­el. A look at its price action may help pro­vide insights into its near-term performance.

Is CRO preparing for a bounce-back?

CRO already broke below the zero or neu­tral Fibonac­ci retrace­ment line ear­li­er this month. It has been hov­er­ing just above the ‑0.272 Fibonac­ci retrace­ment lev­el in the last 3 days. The price floor is hold­ing on well so far, but it remains unclear whether the price will bounce back or break below the support.

Source: Trad­ingView

CRO’s almost dropped into the over­sold zone once again dur­ing the week­end. It looks like some accu­mu­la­tion near the bot­tom allowed it to hov­er just above, with the RSI drop­ping as low as 30.12.

This might be a sign that it is hold­ing strong and it also high­lights price-RSI diver­gence. The price achieved a low­er low than the pre­vi­ous bot­tom but the RSI had a high­er low. Such a set­up is often con­sid­ered bull­ish and might be a sign of some upside ahead.

Are investors buying CRO’s dip?

On-chain met­rics sug­gests that there is sig­nif­i­cant accu­mu­la­tion at CRO’s lat­est lows. For exam­ple, the MVRV ratio has improved since 12 May when it dropped as low as ‑52.24%. It is cur­rent­ly at ‑19.33% and con­tin­ues to show more upside despite the con­tin­ued price drop. This means a lot of accu­mu­la­tion is tak­ing place at the low­er price lev­els and hence some of those buy­ing the dip are in profit.

Source: San­ti­ment

As for CRO’s sup­ply dynam­ics, it looks like out­flows from whale address­es have tapered out and instead paved the way for some accu­mu­la­tion. The sup­ply held by whales increased from 46.35% on 21 May, to 47.27% on 29 May. Mean­while, sup­ply on exchanges lev­elled out on 26 May, and even reg­is­tered a bit of out­flows since then.

Source: San­ti­ment

The above on-chain met­rics align with the prob­a­bil­i­ty of some upside recov­ery, high­light­ed by the CRO price indi­ca­tors. Although it looks like CRO bulls are ready to come back, there is still some risk of bear­ish price slippage.

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