Growing Holder Base Offers Hope for CRO’s Future Despite Fall: What’s Next?

• CRO price has increased by 9% weekly, but faces challenges due to weak liquidity and declining TVL.
• The number of CRO holders has steadily increased, indicating a strong base of long-term investors.

CRO price has garnered attention with a notable 9% weekly increase from a demand area. This price advancement has turned the stats green, with a 2.6% growth in both price and market cap observed intraday.

The price reached $0.07949, and the market cap rose to $2.11 Billion. This has helped Cronos (CRO) climb to the 37th position among the top 50 crypto assets globally.

Additionally, the recent surge saw an increase of over 15% in spot inflow, reaching $5.87 million. However, trading might face challenges due to weak liquidity on exchanges close to its price, with a 24-hour volume-to-market cap ratio of 0.28%.

Despite the weekly growth, it is under the 20-day, 50-day, and 200-day EMA bands, and is in a bearish trend.

Read our analysis to find out if the Cronos price can gain momentum.

Despite the Ascent, TVL Did not Grow

Despite this week’s price growth, the Total Value Locked (TVL) for CRO has not been positively impacted. From a market interest of $3.57 Billion in 2022, the TVL has plummeted by 90% over the past two and a half years to $392.39 Million.

Although there was a rise in price and market interest in the first quarter of 2024, this momentum faded in the second and third quarters.

At present, the TVL shows a significant decline, indicating a loss of confidence in the project, and decreased staking.

For a potential revival in market interest, CRO crypto would need to demonstrate a surge in liquidity and investments. This would mean that price surpasses the 200-day EMA to restore long-term investor confidence.

Total Holders Increase, Painting a Positive Picture Overall

Despite the shaky fundamentals of CRO crypto, the market has seen a steady increase in the number of holders. The total number of holders has grown from 313,826 a month ago to 314,967 currently.

Analyzing the holding patterns, 89.57% of wallets have held CRO for over a year, indicating a strong base of long-term investors. The remaining holders are cruisers and traders who have held the asset for less than a year.

This distribution underscores the dominance of long-term investors and consistent accumulation showcasing buy-on-the-lows.

Decoding the Next Move on the CRO Price Chart

After a significant drop from $1 to $0.048, CRO’s price structure showed a remarkable recovery, advancing over 260% to reach a year-to-date high of $0.1800 by March 10th, 2024.

However, these gains proved unsustainable as bearish forces took over, pushing the price back to its original demand zone near $0.073.

Currently, the accumulation of holders offers a glimmer of hope amid various bearish factors, indicating growing uncertainties in CRO’s price.

Despite some intraday gains, the price continues to face liquidity issues and struggles near the 20-day EMA band.

For a potential bullish reversal, CRO crypto needs a catalyst to drive higher interest. It is already in a key demand area, but further sell-offs could break this zone, leading to lower support around $0.048.

As per the CRO price prediction, a decisive Change of Character (ChoCh) above $0.10 and the 200-day EMA would confirm a bullish signal. Until then, uncertainty remains.

Other indicators are flat, reflecting market uncertainties and providing no clear direction.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.