Key Takeaways
- CRO surged to $0.095 after announcing a Trump Media–Crypto.com ETF partnership, but has fallen to $0.089.
- Momentum indicators like the AO suggest fading bullish strength, indicating that the altcoin may be difficult to break out of.
- The Parabolic SAR has flipped bearish, with resistance forming around the $0.092–$0.10 range, limiting CRO’s upward potential.
Two days after Trump Media announced its partnership with Crypto.com to launch a new exchange-traded fund (ETF), the price of CRO dropped.
CRO, the native cryptocurrency of the Cronos blockchain developed by the Crypto.com exchange, rose to $0.095 on Tuesday following the announcement.
However, this brief surge was short-lived. As of this writing, CRO’s price has fallen to $0.089. The ETF launch was expected to boost interest in the token.
But market reactions suggest that the news failed to sustain momentum. Here is what could lie ahead for the coin.
Cronos Coi Loses Steam After Trump ETF Hype
Before Tuesday’s announcement, CRO’s price was on the brink of falling below $0.080. However, after Trump Media confirmed a binding agreement with Crypto.com, America’s premier crypto trading platform, Yorkville America Digital, to launch a series of ETFs, CRO saw a brief surge, reaching up to $0.095.
“This partnership gives the Trump Media ETFs global distribution powered by the Crypto.com platform. It’s a win for Trump Media, Crypto.com, CRO, and Yorkville America Digital,” Kris Marszalek, Co-Founder and CEO of Crypto.com said about the development
However, despite this spike, CRO failed to maintain momentum and began to drop shortly afterwards. On the daily chart, the Awesome Oscillator (AO) reading failed to rise to the positive region.
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The AO uses recent and historic price movements to measure momentum. When it is positive, momentum is bullish, while a negative reading indicates a bearish one.
Therefore, the current AO reading indicates fading bullish momentum. Should this trend remain the same, the CRO’s price might fail to breach the $0.092 and $0.10 resistance.
CRO Price Analysis: Consolidation Next
Furthermore, CCN also examined the Parabolic Stop-and-Reverse (SAR) position. The SAR is a trend-following indicator that uses dotted lines to identify the direction of an asset’s momentum.
When the dots flip to the top of the candlestick, it indicates resistance. In this case, the price might find it challenging to go higher.
On the other hand, if the dots are below the price, it signifies support. According to the CRO/USD daily chart, the dots of the Parabolic SAR have risen above CRO’s price.
Due to this, the cryptocurrency might find it challenging to rise above the $0.10 resistance at the 0.236 Fibonacci level.
If this trend continues, the Cronos coin value could swing between $0.082 and $0.097 in the short term. However, if selling pressure increases, the target could be lower, and the CRO’s price might drop to $0.068.
On the contrary, a rise in buying pressure could change the situation. Should demand for CRO increase, momentum might become bullish, and the price could rise toward $0.13.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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