Digital

Cronos (CRO) Price Rebound on the Horizon as Long-Term Holders Stand Firm

BeInCrypto

The recent decline in Cronos (CRO) has sparked concerns among investors as the bearish momentum persists. However, on-chain data reveals an intriguing development – long-term holders are growing increasingly reluctant to sell at the current low prices. This article explores the potential impact of this phenomenon on the future price of CRO, as well as the growing trend of investors turning to staking options to mitigate losses.

Cronos Long-Term Investors Show Resilience: Despite the prolonged downward trend of Cronos (CRO) over the past three months, long-term investors are steadfast in their commitment to the cryptocurrency. An important indicator of this resilience is the rising Mean Coin Age, which measures the length of time coins have remained in their respective wallet addresses.

Between May 8 and June 1, the CRO Mean Coin Age increased by a significant 21%, reaching 33.38 from 37.13. This upward trend suggests that Cronos holders are opting to hold onto their tokens rather than sell, in an effort to avoid substantial losses. If this trend continues, it could lead to a reduction in the available supply of CRO in the market and inadvertently trigger a potential price rebound.

Investors Seek Alternatives: Staking on the Rise: As the price of CRO continues to decline, investors are exploring alternative options to counteract their losses. Staking, a process that involves locking up tokens in yield-bearing protocols, has gained popularity among CRO holders.

Data shows that between May 8 and June 1, CRO holders staked an additional 5.6 million tokens, equivalent to 0.022% of the total circulating supply. By staking their tokens, investors reduce the volume available for trading on exchanges. If this trend of increased staking activity persists, CRO stands a chance to defend the $0.059 resistance level.

CRO Price Prediction: Potential Rebound to $0.07? Considering the growing staking activity and the reluctance of long-term holders to sell, there is potential for CRO’s price to rise toward $0.07 in the near future. Analysis of IntoTheBlock’s Global In/Out of The Money Around Price (GIOM) data suggests that CRO may face initial resistance around $0.064.

A notable sell-wall is formed by 13,000 investors who purchased 170 million CRO at an average price of $0.064, potentially posing a challenge for further price growth. However, if this resistance level is overcome as expected, the price could rise even higher towards the $0.07 mark.

On the other hand, it is important to consider the possibility of bears invalidating the bullish price prediction. A drop below the critical support zone of $0.059 could dampen the upward momentum. Yet, it is worth noting that 2,000 investors who bought 18.5 million CRO at an average price of $0.059 are likely to provide support against such a decline. In the unlikely event that this support level is breached, CRO may retrace further towards $0.050.

Conclusion: The recent decline in Cronos (CRO) has sparked concerns among investors, but the growing resilience of long-term holders and the increasing trend of staking provide reasons for optimism. If long-term holders continue to hold their positions and staking activity remains robust, CRO’s price may experience a rebound towards $0.07 in the coming days. However, it is essential to closely monitor market dynamics, as a drop below the critical support zone could negate the bullish outlook.

Leave a Reply

Your email address will not be published. Required fields are marked *