Cronos Falls 16% But Bulls Still Hold the Fort at Key Support Levels

• Cronos’ price is facing bearish pressure as it gets a sharp rejection from $0.400.

• CRO price is down by 16% in the last 24 hours, showcasing bearish dominance.

Cronos is facing bearish pressure on the daily technical chart. As per CMC data, the CRO price is down by almost 16% in the last 24 hours, and the daily trading volume is down by almost 35% showcasing profit booking at higher levels. The altcoin has shown impressive performance in recent months, soaring upwards in an impressive 300% rally, starting around $0.10 and hitting highs of around $0.40, before the recent pullback.

The moving average setup shows the existence of bullish strength in spite of the recent weakness. The 50-day EMA is at $0.1562, which is far above the 200-day EMA at $0.1198, and the golden cross formation is still in place, which normally shows the presence of a sustained uptrend. This 30% difference between the EMAs indicates that the bigger trend is still positive, and offers possible support levels in the event of any further corrections.

Recent price movement indicates that CRO is trading well above the two major moving averages, implying that the recent fall in prices to below its highs of $0.40 is a healthy pullback, not a reversal. The large difference between the current levels and the EMAs offers a buffer against additional downside and still has a bullish structure.

What Next For Cronos Price?

Technical momentum indicators show contradictory signals that need to be interpreted. The RSI value of 79.04 is a sign of severe overbought, which usually implies the possibility of additional downside correction. This excessive reading justifies the recent 16% day-to-day drop as profit-taking increases among short-term investors.

The MACD histogram shows that the momentum is positive and the signal line is above zero, which proves that the uptrend is not lost in the overbought conditions. This disparity between RSI and MACD indicates that the pullback is perhaps temporary and there is a possibility of the uptrend resuming after momentum dissipates.

Analysis of trading volume shows worrying trends, as the amount of volume decreased by 35%, and the price fell. Decreased volume in selloffs is generally a sign of bearish lack of conviction, which may constrain the downside.

The market sentiment is quite positive despite recent volatility, and it is at its peak levels based on the available data. This lack of correlation between price movement and sentiment is usually followed by either sharp reversals or further consolidation periods.

Moreover, the CRO’s most important support is found at the level of $0.25, which was the former resistance and has turned into support. Further down would hit the 50-day EMA at $0.1562. On the other hand, reclaiming the $0.35 resistance may indicate the resumption of the main uptrend to the past highs.

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