Cronos Aims to Enhance the Creator Economy with Web3 Technologies
Cronos is een decentralized, open-source blockchain that is energy-efficient and designed for high-speed transactions with low fees. It can process thousands of transactions per second and is 90% more energy-efficient than traditional proof-of-work blockchains. Cronos is intended to support Web3 applications, such as decentralized finance (DeFi) and gaming finance (GameFi), acting as a foundational infrastructure for a decentralized metaverse.
It is essential to note that Cronos is an Ethereum Virtual Machine (EVM)-compatible blockchain powered by Ethermint, enabling the quick migration of apps and smart contracts from Ethereum and other EVM-compatible chains. CRO, the native token of Cronos, is used to facilitate transactions within the ecosystem.
Increased Market Selling Pressure
The FTX collapse triggered significant selling pressure across the cryptocurrency market, especially for tokens like CRO. Charlie Munger, the billionaire investor and business partner of Warren Buffett, attributed the FTX debacle to a “dangerous mix” of fraud and delusion.
Just days after FTX filed for bankruptcy, Genesis Global Capital, the crypto lending arm of Genesis Trading, suspended withdrawals due to liquidity issues. Analysts believe that this overall downturn in the crypto market is likely to persist until much of the current uncertainty is alleviated.
Is Another Drop on the Horizon?
In response to the FTX crisis, cryptocurrency investors have been withdrawing their assets from exchanges, which may trigger another wave of selling and a continuation of the bearish cycle. Chris Burniske, the former Ark Invest crypto lead, cautioned that investors should prepare for another potential price drop. FTX’s $8 billion debt to investors means they will likely have to liquidate their assets, both liquid and illiquid, to reimburse users.
Burniske also offered valuable advice:
“Given the current market saturation with rumors and misinformation, investors should exercise extreme caution to avoid unnecessary losses due to irrational trading and investments. It’s important to focus on major digital assets that tend to show the overall strength of the market, even amid panic.”
On a positive note, the softening inflation in the U.S. is favorable for riskier assets like cryptocurrencies. Investors hope the Federal Reserve will adopt a less aggressive stance, potentially reducing interest rate hikes. If the Federal Reserve signals a slowdown in rate increases, cryptocurrencies, including Cronos (CRO), could experience price growth in December. Morgan Stanley has indicated that recent statements from Fed officials suggest a possible reduction in the pace of rate hikes.
An Analysis of Cronos’ Technical Indicators
Cronos (CRO) has fallen from $0.178 to $0.050 since November 2022, and the current price is at $0.070. The token may struggle to maintain above the $0.060 mark in the coming days, with a break below this threshold potentially signaling a further decline to the $0.050 level.
From a technical standpoint, Cronos has been on a downward trend since April 2022. As long as the price remains below $0.20, it remains within the “SELL-ZONE.”
Key Support & Resistance Points for Cronos (CRO)
In the chart from April 2022, we can identify key support and resistance levels that traders can use to predict future price movements. Cronos (CRO) is under pressure, but if it surpasses the $0.10 mark, the next potential resistance could be $0.12 or even $0.15. The current support level is $0.060, and a break below this support would signal a “SELL” phase, with the price likely heading towards $0.050. If it falls below $0.050, a crucial psychological support level, the next target could be around $0.040.
Factors Supporting a Potential Increase in Cronos (CRO) Price
Despite recent difficulties in the cryptocurrency market following the FTX collapse, there remains some potential for CRO’s price to rise. If the price breaks above $0.010, the next resistance targets could be $0.12 or even $0.15.
As mentioned earlier, the softening inflation in the U.S. could help boost riskier assets such as stocks and cryptocurrencies.
Indicators Suggesting a Further Decline for Cronos (CRO)
Cronos (CRO) has dropped more than 50% since early November, and experts warn that the downward trend could continue. The ongoing effects of FTX’s bankruptcy are still causing uncertainty in the market, and investors are continuing to offload assets. Since CRO’s price is closely tied to Bitcoin’s movements, if Bitcoin falls below $15,000, it is possible that CRO will reach new lows.
Deskundige meningen en marktvooruitzichten
Craig Erlam, Senior Market Analyst at Oanda, has stated that the near-term outlook for risk appetite remains bleak, with the cryptocurrency market continuing its bearish trend. The fallout from Sam Bankman-Fried’s crypto empire has contributed to a significant decline in cryptocurrency prices, wiping out approximately $183 billion in value this month. Chris Burniske, from Ark Invest, echoed similar concerns, noting that FTX’s liquidation of assets could create additional pressure on cryptocurrencies. According to Burniske, Cronos (CRO) may struggle to hold above the $0.060 level in the coming days, with the possibility of testing the $0.050 mark again if the price breaks below $0.060.
Disclaimer: Cryptocurrency is highly volatile and may not be suitable for all investors. Always invest only what you can afford to lose. This information is provided for educational purposes and should not be considered as financial advice.
