Crypto.com’s CRO has been in trouble, but a 50% price rebound seems to be possible
On Nov. 14, short CRO traders paid a premium of 3% to long traders, indicating extreme bearishness in the futures market. Altcoin Watch Crypto.com’s native cryptocurrency Cronos (CRO), is showing restraint Nov. 14 in response to mounting sell-pressure following the FTX’s dramatic fall last week. CRO/USD price chart weekly. Source: TradingView. Source: TradingViewCRO funding rates drop to -3% A positive funding rate is when bullish traders (long positions), pay bearish traders, which indicates their confidence in a price rally. Conversely, a negative funding ratio means that short traders pay long traders to keep open their positions. Source: Coinglass.com. CRO funding rates history. Source: Coinglass.com “This is literally the exact same dynamic as before Celsius and FTX collapsed,” Dylan LeClair, senior analyst, digital asset fund UTXO Management, said that CRO funding rates on Huobi and OKX dropped to minus 3% on Nov. 13. Analysts pointed out that Crypto.com holds low-liquid cryptocurrencies such as Shiba Inu and its own token, CRO, as reserves. These cryptocurrencies reportedly account for 40% of the exchange’s total assets. 4.https://t.co/INIxikfNzy holds $1.6B worth of BTC/ETH/USDT/USDC/DAI/BUSD assets, accounting for 60%.40% of assets are low liquidity assets.– Lookonchain (@lookonchain) November 13, 2022
Crypto.com also moved $210,000,000 worth of stablecoins from Binance and Circle, before displaying its reserves to the public. Changpeng Zhao, Binance CEO, confirmed the move. He also warned caution as the April 2020 CRO fell to its April 2020 low of $210 million. Stay away. Stay #SAFU CZ Binance (@cz_binance), November 13, 2022
Additionally, Crypto.com misappropriated a $400 million Ether transaction and sent it to a Gate.io wallet instead of cold storage. Although the exchange was able to recover the funds later, it also raised many questions. Crypto_com CEO claims they accidentally sent $400 million of their Eth to the wrong wallet. He’s either lying or incompetent. https://t.co/hWXvPqBime– Coffeezilla (@coffeebreak_YT) November 13, 2022
According to data from Argus Inc., Crypto.com saw its users withdraw $14 Million in ETH and $39 Million in other tokens over the weekend. Source: TradingViewA similar drop in June earlier in the year had preceded a 75% rally from $0.099 – $0.1622. Source: TradingView. Another bullish indicator is strong historical support for $0.061. CRO’s current price range between $0.061 and $0.111 is the highest volume profile visible range (VPVR), on record. CRO’s price could rise to $0.111, which is more than half its current price level, and it could reach its next upside target of $0.111. Related: Exchange outflows hit historic highs as Bitcoin investors self-custodyConversely, CRO/USD falling alongside funding rates suggests that its drop may have been driven by futures markets, which was also the case with Terra’s collapse in May. The persistent bearish sentiment in the cryptocurrency market could hamper CRO’s recovery prospects. You should do your own research before making any investment or trading decision.