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With a dramatic 23% price increase this week, Cronos (CRO) has emerged as one of the top performers on the cryptocurrency markets. Do bulls still have more to give?
Layer 1 blockchain network Cronos (CRO) was developed by the well-known cryptocurrency trading site Crypto.com. The native coin, CRO, still seems to be flying under the radar of many cryptocurrency investors despite the recent upward price movement. Could this lead to further price increases for CRO in the near future?
On-chain data reveals that market opinion around CRO is still primarily negative. As of April 28, the CRO Weighted Sentiment indicator has gone from -0.21 at the beginning of the month to -1.06.
The Weighted Sentiment measure compares the ratio of positive to negative mentions across pertinent crypto media sources to assess the social perception of a project.
Weighted Sentiment indicates widespread Fear, Uncertainty, and Doubt (FUD) when it remains negative over a lengthy period of time, as seen above. New investors might come into the market and unintentionally drive up the price of CRO once that FUD has subsided.
It’s interesting to note that on Thursday, April 27, global IT giant Samsung and Crypto.com announced a historic partnership. As part of the agreement, the blockchain company will provide improved trading and research capabilities for Samsung’s most recent flip phone lineup.
This historic occurrence could alter public image of the Cronos network and lead to further price increases.
Despite recent price increases, it still seems like the Cronos native coin is cheap. The Network Value to Transaction Volume (NVT) ratio for Cronos is still rather low, according to Santiment.
The NVT ratio is a financial indicator that assesses an asset’s intrinsic worth by contrasting market capitalization growth with transaction volumes.
The CRO NVT ratio has been going down over the past two weeks, as seen by the blue line in the figure below. It was 12,364 on April 9 and is now at 4,936 as of April 28, a 60% decrease.
The NVT ratio is a crucial tool for investors to measure a cryptocurrency’s growth potential and determine its underlying worth. If it starts to fall significantly, adoption rates are outpacing the existing level of transactional activity.
In conclusion, the low CRO NVT ratio ratios and unfavorable social sentiment indicate that the currency is currently undervalued. If strategic investors view this as the ideal time to buy in, there may be more profits.
In/Out of Money Around Price (IOMAP) data from IntoTheBlock indicates that Cronos bulls will likely drive the price surge toward $0.085.
The 478 million CRO tokens purchased by the 9,000 addresses are now anticipated to provide significant resistance around the $0.078 price level.
However, if the positive scenario materializes as anticipated, CRO price would probably increase to $0.085. At this first resistance level of $0.083, however, bearish pressure from a further group of 1,750 addresses holding 525 million coins could erect a barrier. At $0.085 and $0.086, additional resistance would be felt, respectively.
If Cronos loses the $0.077 support, on the other hand, the bears can invalidate the bullish posture. However, as mentioned earlier, some of the 9,000 addresses holding 478 million coins will probably stop this.
Holders of CRO should prepare for another price decline toward $0.070 if the support cannot hold, though.
