Markets

Can Cronos (CRO) price continue to rise?

As the cryptocurrency markets rebounded this week, Cronos (CRO) has emerged as one of the top performers, with a sharp price rally of 23%. Do the bulls have more in the tank?

Cronos (CRO) is a layer 1 blockchain network created by Crypto.com, a prominent cryptocurrency exchange platform. Despite the recent bullish price move, the native coin, CRO, is still flying under the radar of many crypto investors. Could this lead to more CRO price gains in the coming days?

Kronos flies under the radar

Data across the chain indicates that market sentiment surrounding CRO remains largely negative. Since the beginning of the month, the weighted CRO sentiment has slipped into negative territory from -0.21 to -1.06 as of April 28th.

The Weighted Sentiment Scale assesses the social perception surrounding a project by comparing the ratio of positive to negative signals across relevant encrypted media channels.

Chronos price (CRO) vs weighted sentiment. April 2023 Source: Emotion

When the weighted sentiment remains negative for long periods, as we saw above, it indicates fear, uncertainty, and doubt (FUD) is pervasive across the project ecosystem. Once this FUD becomes clear, new investors can enter the market and inadvertently increase the price of the CRO.

Interestingly, on Thursday, April 27, Crypto.com announced a major milestone cooperation With the global technology giant Samsung. The deal with the blockchain company provides enhanced trading and analytics capabilities for Samsung’s latest range of foldable phones.

This historic event could turn the tide of social perception around the Cronos network and lead to further price gains.

CRO still appears undervalued

Despite recent price gains, the native coin Kronos still appears to be undervalued. According to Santiment, the ratio of Cronos network value to transaction volume (NVT) remains relatively low.

The NVT ratio is a financial metric that evaluates the intrinsic value of an asset by comparing the growth in market value of transaction volumes.

The blue line in the chart below shows that the CRO NVT ratio has been trending lower in the past two weeks. As of April 28, it was at 4,936, down 60% from the 12,364 recorded on April 9.

Cronos (CRO) price vs. NVT ratio.  April 2023
Cronos (CRO) price vs. NVT ratio. April 2023 Source: Emotion

The NVT ratio is an important tool for investors to assess the fundamental value of a cryptocurrency and assess its growth potential. When it drops significantly, it indicates that adoption rates are growing faster than the current volume of transaction activity.

In summary, the negative social sentiment and low values ​​of the CRO NVT ratio indicate that the coin is still undervalued. Further gains could be made if strategic investors interpreted this as the perfect timing to buy.

CRO Price Prediction: $0.085 Viable Target

According to the In/Out of Money Around Price (IOMAP) data released by IntoTheBlock, the Chronos bulls are likely to push the price towards $0.085.

Currently, the 9,000 addresses that have bought 478 million CRO tokens are expected to offer significant resistance around the $0.078 price range.

But if the bullish scenario plays out as expected, CRO price is likely to rise to $0.085. However, bearish pressure from another group of 1,750 addresses holding 525 million coins could form a barrier at this first resistance level at $0.083. It will face more resistance at $0.085 and $0.086 respectively.

Cronos Price Distribution (CRO) IOMAP data.  April 2023
Cronos Price Distribution (CRO) IOMAP data. April 2023 Source: IntoTheBlock

Conversely, the bears can invalidate the bullish stance if Kronos loses the $0.077 support. But as mentioned above, this will likely block a portion of the 9,000 titles that hold 478 million coins.

But if the support cannot hold, CRO holders can get ready for a further price correction towards $0.070.

Disclaimer

In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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