Cronos (CRO/USDT) has shown an upward move followed by a small pullback that has placed it at $0.16061 with a price dip of 7.66%.
Institutional investors are cautious because the dominance of Bitcoin influences altcoins, which increases concern regarding the short-term perspective on CRO.
Cronos (CRO) Nears Overbought Zone as Price Tests Upper Bollinger Band
The recent price pushed the CRO price above the upper Bollinger Band currently. An upward breakout above the upper band is a clear sign of a strong buy signal.
– Advertisement –
It may indicate that the market is overbought. As we can see from the chart, the breakout above the CRO resistance level which is at the upper Bollinger Band was not long enough, and minor pullbacks were seen as traders had already started taking in profit.
The price has already started giving a bearish reversal but this is normal after testing the resistance level.
However, if the downward trend persists, the middle Bollinger Band at $0.10224 could serve as a critical support line for CRO.
– Advertisement –
The Relative Strength Index (RSI) is at 66.69, indicating that the market is approaching the overbought mark at 70.
In case the RSI fails below 60 it could suggest the market is shifting from bullish to bearish.
Analyst PStrade2 Sees CRO Dropping to $0.12 Support Before Rebound
PStrade2 suggests that CRO could face pressure from the bears pushing the price to the downside. He outlines a support zone at $0.12 and a 30% retracement from its current price.
PStrade2 indicates that the price of $0.12 may still act as a good entry point to CRO as it might signify the start of a consolidation phase before the bulls come out again.
Market Sentiment and Altcoin Weakness
The overall market sentiment also affects Cronos since Bitcoin’s dominance keeps on rising. As Bitcoin prices continuously surge and hit new highs, funds often flow out of altcoins, leaving tokens like CRO vulnerable to price drops.
This increased Bitcoin dominance, coupled with CRO’s recent overextension, raises the probability of a deeper correction.
$CRO#Cronos may correct to $0.12 before continuing its strong downward trend. This is a -30% drop from the current price. #Bitcoin is currently at historic highs. The dominance of BTC continues to grow even on the local correction of the BTCUSDT price. Altcoins are weak and the… pic.twitter.com/cmbaKXr7XL
— PS trade (@PStrade2) November 13, 2024
Moreover, PStrade2 added that all altcoins are prone to this market weakness in general. He also stated that although $0.12 could be a good entry, watching the market closely before entry is also wise.
