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Crypto.com has plunged 4% in the past day
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Tokens native to crypto exchanges are also looking bearish amid volumes
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CRO has retested key support with a low momentum
Crypto.com CRO/USD price is hovering around $0.1051 after dropping 4.92% in the past day. The token’s weekly losses currently stand at 11.04%. The bearish turn is not specific to CRO. Several tokens native to crypto exchanges are also facing a sell-off.
BNB token is down 6%, while Huobi token and FTT have lost 3.04% and 11% in the past week. The trend can be linked to low trading activities amid a prolonged market correction. Currently, the crypto market capitalization has dropped 3.7% to $961 billion.
Cronos, formally called crypto.com token, is used for payments, trading, and financial services. The digital asset is backed by Crypto.com, one of the fastest-growing crypto exchanges. CRO remains bearish despite the exchange recently adding support for native assets of an NFT platform.
In the deal, users can trade native tokens of Minted, a Cronos Labs Startup. The entity allows for the listing and purchase of over 10 million NFTs on CRO and Ethereum blockchains. Other fundamental aspects holding back CRO are related to regulatory aspects.
The exchange was recently forced to halt UEFA league sponsorship deals worth $500 million. Crypto.com, which has been known for teaming up with sports companies, cited regulatory concerns. The technical outlook is not looking great either.
CRO retests $0.1054 support amid a bearish momentum
Source: TradingView
From the daily chart above, CRO has been trading on a trend of lower highs and lower lows. It moved from $0.1557 on August 13 to the current price of $0.1051, signifying a 32% decline. The downward pressure has driven CRO below the 20-day and 50-day moving averages.
At 13, the Stochastic Oscillator is at the oversold zone, showing that the token could be due for a trend reversal. However, a trend reversal remains subject to a change in sentiment. If that is the case, the immediate resistance level will shift to $0.1213.
Concluding thoughts
CRO is facing bearish pressure amid a waning momentum. Although the token has entered the oversold zone, a trend reversal is not visible. The token has retested support and can trade lower if the level does not hold.