Cronos (CRO) fell another 18% in May. It appears that the bearish momentum is approaching critical levels. On-chain data shows that holders of long commodities are increasingly unwilling to sell at the current low prices. Will they inadvertently cause the Kronos price to rebound?
Cronos (CRO) has been stuck in a downtrend for three consecutive months. With unrealized losses piling up, investors now seem unwilling to sell. How could this affect the price of CRO in the coming days?
Kronos Long Term Investors is a holding company
With the bearish momentum continuing, it now appears that long-term investors on the Cronos network are waiting for future gains. The rising average age of the coin is a prime indicator of this.
In simple terms, Average Coin Life evaluates how long coins in circulation have remained in their previous wallet addresses.
Between May 8th and June 1st, the average age of CRO coins increased by 21% from 37.13 to 33.38.
When the average life of a coin increases significantly, tokens stay longer in their existing wallet addresses. As we saw above, Kronos holder investors avoided selling to avoid huge book losses.
If the trend continues, they could sell off supply in the Cronos market and inadvertently cause a price rebound.
Investors are turning to staking options
With CRO prices still falling, it appears that holders are now turning to yield tolerance protocols to mitigate their losses. The graph below shows that CRO holders accumulated an additional 5.6 million tokens (0.022% of the total circulating supply) between May 8 and June 1.
Supply in smart contracts It tracks the portion of the circulating supply of cryptocurrencies that investors lock into staking protocols. When holders of tokens lock up, it reduces the volume available to trade with on cryptocurrency exchanges.
If Kronos investors continue to increase their holdings at this rate, the CRO has a chance to defend the $0.059 resistance.
CRO Price Prediction: Possible Rebound to $0.07?
Considering the increase in staking activity and the unwillingness of long-term holders to sell, the CRO price may rise towards $0.07 in the coming days. IntoTheBlock‘s Global In/Out of Money Around Price (GIOM) The data suggests that the CRO will encounter its initial resistance around $0.064.
As shown below, 13,000 investors who bought 170 million CRO at an average price of $0.064 can erect a selling wall. However, if this resistance level is breached as expected, the price could rise further towards $0.07
On the other hand, the bears could invalidate the bullish price prediction if CRO unexpectedly drops below the critical $0.059 support area.
But, 2,000 investors who bought 18.5 million CRO at an average price of $0.0.59 are likely to prevent the decline. Although unlikely, the CRO could rebound further towards $0.050 if this support level is breached.
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.
