The CRO of the Crypto.com token is bearish in a support zone.
The weakness in CRO is tied to the crypto market and reduced card rewards.
The cryptocurrency is almost 10 times below its all-time high.
Crypto.com’s CRO/USD token is worth just $0.1. The price is a slap in the face for a token that once traded almost at $1. At the current price, CRO is trading in a support zone and investors might be looking to add positions. But should you buy it now?
We investigate why CRO has dropped significantly despite numerous sponsorship deals. Bearish crypto sentiment has of course been the main source of weakness. The weakness was linked to actions taken by central banks to tighten policy. Again on Wednesday, the US Department of Labor reported a 9.1% annual jump in inflation. The increase was above estimates at 8.8%. CRO fell after the inflation figures, which fueled fears in all markets.
Another factor has been responsible for the drop in CRO in recent weeks. In early May, the crypto exchange announced a reduction in card rewards to customers. The move underscores similar actions taken by crypto firms to remain liquid in today’s market. CRO crashed into double digits following reduced rewards. The token has yet to recover as investors remain cautious. We believe that with such developments, CRO is not a buy at this time and could decline further.
CRO is near the oversold floor, but weakness is present
Source – TradingView
Technically, CRO is nearly oversold, with an RSI reading of 35. However, the reading is insignificant given the weak fundamentals in the crypto. From the daily chart, the cryptocurrency remained below the 14-day and 21-day moving averages. At the current level, the CRO is in a support zone, offering a potential bullish reversal. Nevertheless, the price is extremely bearish and a further decline is imminent.
The Crypto.com token is under control as inflation figures exceed estimates. The price is in a support zone, but further declines are possible. We do not encourage a support purchase.