Crypto.com has been in the news over the past day owing to its recent $15 million worth of hack. Such events usually tend to have a negative implication on the underlying asset’s price.
Surprisingly, CRO has not reacted to the same in an outright fashion yet. Since 8 January, this token has only been making horizontal movements on its price chart. And even post the hack, it did not deviate from the said trend.
Making sense of the horizontal movements
On the macro-frame, things do not look all that favorable to CRO. From 3 to 24 November, this token managed to rally close to 300%. But post that, it set on its downtrend. In fact, during the initial days of December, talks were going on about CRO completing a ‘Burj Khalifa’ pattern on its price chart.
However, towards the end of the first week itself, CRO held back and started restraining from dipping to lower levels. It also registered a host of back-to-back green candles in the third week but chose to continue on the downtrend, leaving the said Burj Khalifa pattern incomplete.
Now, the horizontal movements essentially indicate that CRO has a couple of strong support levels in and around its current price range. So, if the buying momentum increases going forward, then CRO would eventually be able to start climbing higher.
However, if bears manage to overthrow bulls or if the broader market trend ends up playing spoilsport then CRO would witness a free-fall from here on.
Gauging the sentiment
Well, at the time of writing, the sentiment needle did not point towards any clear-cut trend. It remained neutral.
However, upon further inspection, it became clear that the market was starting to lean towards the bears. The buyer-seller trade difference depicted a negative value of 551k tokens, justifying the same.
Despite the horizontal price movements, the average HODLer balance has shrunken of late, with the curve continuing to point downwards.
Well, Crypto.com’s native token currently shares a correlation of 0.94 with Bitcoin. So, if the latter manages to pull up its socks and recover, CRO would unhesitatingly do so. However, if that doesn’t happen, then short-term CRO HODLers should brace themselves to witness another leg down.