Key Takeaways:
- Crypto.com's Cronos (CRO) could half its value.
- The bearish technical setup backs the claim, along with declining trading volumes.
- Meanwhile, Crypto.com eliminated the Spotify and Netflix deal.
YEREVAN (CoinChapter.com) – Crypto.com’s native token Cronos (CRO) stood at $0.12 in the New York session on July 25, after a week of sideways consolidation. However, the digital asset could face a 50% decline in the coming sessions as it formed a bearish setup dubbed the “Bear Flag.”
CRO in a Bear Flag
The said formation occurs after a sharp downward move. Then the price action consolidates within a channel created by two parallel trendlines. They take the value slightly higher through consecutive support, and resistance retests before dropping it again.
Also read: Bitcoin Price Forms Bullish Breakout Pattern, Why Trend Remains Positive.
Moreover, the drop after the Bear Flag equals the decline preceding the formation, i.e., the flagpole. As the chart below demonstrates, CRO retested the Flag’s resistance on July 20, heading for another leg down. Should the forecast play out, the token’s target price would be around $0.06, or 50% below the current value.
Additionally, the lowering trading volumes support the bearish prediction, showing traders’ disinterest in the digital asset. Thus, a retreat back to the Bear Flag’s support seems warranted.
Also read: Voyager refused FTX offer – “low ball” bid, or not?
While the technicals favor the bears, the Cronos controversy didn’t help matters either.
Crypto.com upgrades Visa card policy.
Crypto.com eliminated a critical feature in its Visa card policy, making it the most popular crypto-linked card program. As a result, members have now been excluded from the rebate benefits they enjoyed through Spotify and Netflix.
In detail, before the elimination, the said cardholders did not receive CRO as reimbursement and were instead given a 2% back on spending with Spotify and Netflix.
Also read: Tezos sees increased network usage in Q2 while XTZ targets 30% gains.
Soon after the announcement on 23 July, Cronos became a crucial subject of discussion on social channels. And consequently, its social dominance shot up to a 2-month high.
Crypto tracking platform Santiment commented on the matter, asserting that “Reddit has been pondering the best way to dispose of the card ever since.”
Also read: KuCoin CEO debunks bankruptcy rumors, says exchange not facing financial crisis.
