Cronos gained 5% over the past week to continue its bullish trajectory. A deeper on-chain analysis shows that the number of long-term holders is on the rise. How can this affect the CRO price?
During the recent decline, there was a positive divergence between the CRO price and the daily active addresses.
Cronos hasn’t lost traction during the recent downswing
Cronos (CRO) is the native cryptocurrency of Cronos Chain – a decentralized, open-source blockchain network developed by the Crypto.com exchange. On March 22, the price of CRO increased by 5% as crypto markets reacted to the news that the exchange had obtained an initial license in Dubai. The underlying on-chain metrics suggest that there could be more gains ahead for CRO holders.
The yellow line on the sentiment chart shows how daily active addresses increased in the opposite direction from 473 to 726 during the recent 13% price correction between March 1st and March 20th.
Typically, if a blockchain network starts to attract traction during a downtrend, it signals an imminent recovery. As a result, this positive divergence could provide more gains for CROs in the coming weeks.
Similarly, the increasing number of long holders on the Cronos network also validates the bullish trend.
The IntoTheBlock chart below shows the number of long-term wallet addresses holding CRO increased by more than 20,000 between February 10th and March 24th. During the same period, the number of short-term traders decreased from 6,430 to 4,770.
An increase in the number of long term holders is a bullish sign. This implies that the stakeholders are becoming increasingly confident about the future prospects of the project.
If Cronos Chain maintains this trend, it could attract new investors to the network. Ultimately, the increased demand may positively affect the price of CRO.
CRO Price Prediction: Way to $1
According to Exchange Market Depth data collected by IntoTheBlock, CRO may soon break above $1.0. The Market Depth chart shows important buy walls and sell areas based on the current limit orders placed on the exchanges by traders.
As seen below, if CRO can break out of its current resistance at $0.70, it may face minimal resistance until it reaches $0.85, where sellers are looking to offload 656 million CRO tokens.
If that important resistance doesn’t interrupt the rally, CRO could reach $1.0. At this point, exchange traders hold 486 million coins for sale.
To force the bears lower, CRO should lose its current support and decline towards the $0.60 area. In the $0.60 area, buyers have placed orders for over 60 million CRO. If this support does not hold, CRO holders can expect a major decline to $0.50.
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