Assessing why CRONOS [CRO] lost over 12% of its value in one day
It’s hard to overstate the importance of an exchange token. Despite what traders might feel, exchange tokens make it possible for investors to access crypto marketplaces every second of the day. Thus, they can hold their own against even the biggest players in the industry.
However, CRONOS [CRO], the native token of the CRONOS chain which is associated with the Crypto.com exchange, has been seeing red lately. At press time, CRO was trading at $0.3103, after losing 12.85% of its value in a single day. Adding to that, the token slipped by 19.32% in the past week.
Not CRO-wing about its victory
So, how low is CRO when compared to the general market, really? The metrics don’t paint an encouraging picture for bulls. For starters, the 365-day MVRV ratio fell into sub-zero territory around mid-April, showing that on average, most CRO holders are facing losses.
However, it’s important to note that CRO volumes were going ballistic at press time, with a spike the likes of which was last recorded around February 2022.
Adding to that, the supply of CRO on exchanges was dropping quickly. Taken together, these metrics suggest that investors are buying the dip and stocking on CRO while it’s at a discount.
In fact, this event has the potential to trigger a rally again. The Bollinger Bands for CRO were diverging at press time, and the most recent red candles had broken through the lower band. This indicates that traders can expect lots of volatility and that the asset might be oversold. This, in turn, can result in a rally.
In fact, at press time, a small green candle was taking shape.
Who knows? CRONOS
So, which group of investors is responsible for these strange movements? You might be tempted to point a finger at whales, but Santiment data showed that while whale transactions worth above $100,000 did surge, this spike was not a major one.
A likely interpretation is that with CRO prices hitting dramatic lows, much smaller Crypto.com users are stocking up on the exchange token for their future transactions.