Key Takeaways
- CRO broke out of a symmetrical triangle on the daily chart, with the AO confirming bullish momentum.
- The supply of CRO on exchanges is declining, suggesting that holders are withdrawing coins, reducing sell pressure.
- The 20-day EMA has flipped to support CRO’s price, indicating that the altcoin might rally near $0.15.
CRO, the native token of Cronos, Crypto.com’s open-source decentralized blockchain, appears ready to hit escape velocity. Within the last 30 days, the CRO crypto price has increased by 15%.
Over the past week, CRO’s rally appeared to lose momentum. However, the cryptocurrency showed fresh signs of resuming the rally during the weekend.
If this bullish momentum continues, what could be next for the Cronos coin?
CRO Escapes Consolidation
At press time, the CRO crypto price is $0.10. The altcoin hit this level after breaking out of a symmetrical triangle pattern on the daily chart.
A symmetrical triangle indicates a consolidation phase, where price volatility decreases as buyers and sellers reach a temporary equilibrium.
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In this pattern, the upper trendline slopes downward, linking lower highs that act as resistance. The lower trendline slopes upward, on the other hand, and connects higher lows that provide support.
This balance between bulls and bears precedes a decisive price move. The breakout above the upper trendline for CRO indicates that bullish momentum is dominant.
The Awesome Oscillator (AO) position also reinforced this bias. From the image below, the AO reading has crossed into the positive zone, signifying bullish momentum.
Should this trend continue, CRO’s price might break the resistance at $0.13 as long as the support at $0.080 holds.
Sell Pressure Fades
Amid this breakout, the CRO crypto has experienced a notable decline in the number of coins held on exchanges.
Data from Glassnode shows that during much of March and parts of April, the supply of CRO on exchanges increased, coinciding with a price drop from $0.12 to $0.082.
However, the 30-day supply of CRO on exchanges has steadily decreased in recent weeks. This trend suggests that holders withdraw their coins from exchanges, indicating reduced selling pressure and increased confidence in holding.
If this pattern continues, it could fuel a renewed uptrend in CRO’s price.
CRO Price Prediction: Recovery Imminent
Zooming into the daily chart, CCN observed that CRO has moved above the 20-day Exponential Moving Average (EMA). Typically, when the 20 EMA (blue) is above the price, it acts as resistance, limiting upward movement.
However, since the 20 EMA is now below CRO’s price, it appears to be offering support. Additionally, the Relative Strength Index (RSI) is positioned above the neutral 50 line, indicating bullish momentum around the cryptocurrency.
If these indicators maintain, CRO’s price could rally toward $0.15, representing a potential 45% increase from current levels.
In a highly bullish scenario, the altcoin might surge past the realized price of $0.16. If that happens, CRO might hit $0.19 near the 0.236 Fibonacci level.
On the flip side, if the cryptocurrency falls below the upper trendline of the symmetrical triangle, this breakout might not occur. Should that be the case, CRO might slide toward $0.068.
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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