Crypto.com Chain wipes out weekly gains as CRO price drops over 30% in two days

Key Takeaways:

• CRO, Crypto.com’s in-house token, lost 30% after a new all-time high on Wednesday.
• The token could hold support at $0.58 and consolidate before a new leg up.

YEREVAN (CoinChapter.com) – CRO, the native token of Crypto.com, a crypto exchange with a daily transaction volume of $1.87 billion, declined 30% since peaking at an all-time high of $0.95 on Nov 24. The digital asset shaved 21% off its market cap and traded at $0.65 in the European session Friday.

In the previous Crypto.com report on Nov 24, CoinChapter predicted a looming correction based on weakness in the bullish momentum. At the time, CRO flashed a trading volume diversion on the daily chart. In detail, while the CRO bulls pushed the price higher, the trading volume (vertical bars on the chart below) declined.

Moreover, the digital asset’s relative strength index (RSI; momentum indicator) read 91. The ‘overbought’ RSI above 70 typically indicates an upcoming decline, as traders tend to sell the asset and take profit.

Also read: Crypto.com's marketing tactics send CRO prices doubling in just a week.

The indicated factors halted CRO’s rally and brought the value down to $0.65. The previously ‘overbought’ RSI fell to 60, and the trading volume declined in confluence with the price action. However, the upcoming $0.58 resistance/support level, prominent on the four-hour chart, could assist the token and pause the drop.

What’s ahead for Crypto.com?

While CRO fell 30%, some experts believe the platform’s $800 million Q4 advertising campaign could still push the token towards new records. Blake Cassidy, the CEO of Australian micro-investments firm Bamboo, commented on Crypto.com’s marketing strategy.

Crypto.com has been going from strength to strength over the past few months. […] The Crypto.com app is now one of the most popular platforms in the app store and Google Play store to buy, sell and spend crypto. Therefore, the uptake in the token is expected to be somewhat correlated.

said the CEO.

The executive also noted that the exchange is among the first to achieve Service Organization Control Audit compliance. Mr. Cassidy called it an “impressive accreditation.”

Moreover, the Singapore-based exchange’s Cronos, an EVM (Ethereum Virtual Machine)-compatible chain, reached record TVL (total value locked) before the decline.

Also read: Crypto.com's $700M marketing adventure pushes CRO price to a new record high. 

Based on the successful marketing strategy, Crypto.com could resume the uptrend after a consolidation phase. As of publication, CRO’s price action dove 30% in two days and stood at $0.65. The upcoming sessions will show if the decline halts at $0.58 support, or continues lower.