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Crypto.com token CRO is bearish at a support zone.
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CRO weakness is connected to the crypto market and slashed card rewards.
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The cryptocurrency is almost 10 times below its all-time high.
Crypto.com’s token CRO/USD is barely worth $0.1. The price is a slap for a token that once traded almost at $1. At the current price, CRO trades at a support zone, and investors could be looking to add positions. But, should you buy it now?
We investigate the reasons why CRO has fallen substantially despite numerous sponsorship deals. The bearish crypto sentiment has, of course, been the main source of weakness. The weakness has been connected to actions by central banks to tighten policy. Yet again, on Wednesday, the US labor department reported an annual 9.1% jump in inflation. The increase was higher than estimates of 8.8%. CRO proceeded down after the inflation numbers, which stoked fears across all markets.
Another factor has been responsible for CRO declines in recent weeks. In early May, the crypto exchange announced a reduction of card rewards to customers. The move underlines similar actions taken by crypto firms to remain liquid in the current market. CRO crashed by double digits following the slashed rewards. The token is yet to recover as investors remain cautious. We believe with such developments, CRO is not a buy at the moment and could fall further.
CRO is close to the oversold bottom, but weakness is on
Source – TradingView
Technically, CRO is almost oversold, with an RSI reading of 35. However, the reading is insignificant considering the weak crypto fundamentals. From the daily chart, the cryptocurrency has remained below the 14-day and 21-day moving averages. At the current level, CRO is at a support zone, offering a potential bullish reversal. Nonetheless, the price is extremely bearish, and a further drop is imminent.
Summary
Crypto.com token is under bear control as inflation numbers surpass estimates. The price sits at a support zone, but further declines are possible. We do not encourage a buy at the support.