The price of Cronos (CRO) has recently surged by 16% following a significant meeting between Crypto.com CEO Kris Marszalek and U.S. President-elect Donald Trump on December 17, 2024. This rally was bolstered by Crypto.com’s decision to withdraw its lawsuit against the U.S. Securities and Exchange Commission (SEC). This strategic shift aligns with the company’s vision of collaborating with the incoming administration to help establish a regulatory framework that benefits the cryptocurrency sector.
How the Rally Unfolded
For much of the previous month, CRO had been trading below the $0.20 mark, following a notable decline that had seen the token dip under the $0.083 support level earlier in the year. However, once the U.S. Presidential election results were announced, CRO began to climb, skyrocketing by as much as 210% in just a week. The token briefly hit $0.20 before settling between $0.17 and $0.20.
The buzz surrounding Marszalek’s meeting with Trump, alongside the news of the SEC lawsuit being dropped, acted as a pivotal trigger, allowing CRO to achieve a 16% gain in a very short period. This optimism about potential collaboration with the new administration revived market sentiment around Crypto.com and its token, leading to a spike in trading volume that reflected enhanced investor interest.
Market Sentiment and Technical Indicators
Despite the impressive price jump, the market sentiment surrounding CRO is now somewhat mixed. Following the rally, trading volume has notably decreased, resulting in a consolidation phase. This reaction is typical after such strong price movements, as traders pause to evaluate their next actions.
Technically speaking, CRO’s indicators remain promising for the time being. The Chaikin Money Flow (CMF) sits at +0.23, indicating a positive inflow of capital. On the other hand, the Relative Strength Index (RSI) hovers above neutral at 50, suggesting momentum isn’t fully bearish yet. There hasn’t been a strong signal of reversal, leaving room for potential growth or further correction.
Whale Activity and Market Dynamics
Nevertheless, the rally has its challenges. The initial price spike attracted speculative interest, but Open Interest (OI) metrics have decreased, suggesting that many traders quickly exited after securing gains. OI reflects the total number of outstanding contracts, and a decline signals that larger market players may not show sustained interest.
Additionally, the spot market exhibits signs of weakness. The Cumulative Volume Delta (CVD) for CRO has been declining, which hints at persistent selling pressure. Many investors seem to be locking in profits or exiting their positions as the price battles to maintain its upward momentum above $0.20.
What’s Next for CRO?
Looking ahead, CRO’s future hinges on its capacity to stabilize above significant support levels and whether that speculative interest can continue. The $0.20 mark poses a crucial resistance point; overcoming this could signal the beginning of a more extended rally. On the flip side, if CRO dips back to the $0.16-$0.17 range, it could present an entry point for traders, especially if further favorable developments emerge regarding the lawsuit with the SEC and the shifting regulatory landscape.
For now, investors need to watch market volume closely, stay aware of broader crypto market sentiments, and monitor any new updates regarding the SEC lawsuit and the relationship with the new administration. CRO’s current trading activity reflects a mixed outlook, with opportunities for both gains and potential corrections in the near term.
While the legal changes and the meeting with Trump have clearly provided a boost to CRO, cautious market conditions persist. The fading whale activity and ongoing selling pressure in the spot market suggest that maintaining these gains may prove challenging. Investors should keep an eye on technical benchmarks and news developments to navigate the next steps for CRO in 2024.
