CRO cryptocurrency has emerged from a 3-month downtrend following a proposal by Cronos to create a strategic reserve.
On March 3, Cronos, the Layer 1 blockchain linked with a prominent crypto exchange, introduced a plan to establish a Cronos Strategic Reserve wallet by reissuing 70 billion CRO tokens that were burned in 2021.
This significant burning event, one of the largest in the history of cryptocurrency, reduced the supply from 100 billion to 30 billion CRO tokens, reinforcing decentralization efforts prior to Cronos’ mainnet launch.
The new reserve will be governed by a 5-year vesting period and is aimed at funding an ambitious roadmap, including plans to pursue a spot ETF launch by the end of 2025.
As of March 17, voting on the proposal has revealed over 99.76% support for restoring the total token supply back to 100 billion CRO.
Cronos (CRO) surged to an intraday high of $0.101, representing a remarkable 46% increase from its weekly low, while its market capitalization reached $2.5 billion. Daily trading volume saw an impressive rise of 773%, surpassing $164 million.
Fueling the enthusiasm for the token, Cronos stated that the Strategic Reserve would bolster “America’s ambition to become the World Capital of Crypto,” capturing the interest of traders during a period of overall market growth, spurred by notable announcements concerning a national crypto reserve.
Despite the excitement, the proposal has drawn criticism from some community members, who argue that increasing the supply could result in price dilution.
CRO Price Analysis
Technical indicators indicate a bearish sentiment for CRO in the near future.
On the 1-day CRO/USDT price chart, CRO has recently exceeded a descending trendline established since December 17, following the formation of a head and shoulders pattern that hinted at bearish momentum.
Nevertheless, the 200-day moving average remains above the 50-day MA, suggesting that recent price behaviors have been weak, with bearish pressure still prevalent and buyer interest low.
Currently, the Supertrend Indicator is in the negative zone, while the Relative Strength Index stands at a neutral 42, indicating that CRO is in a challenging position. These metrics imply that the momentum needed to overturn the existing bearish trend is insufficient.
At present, CRO is trading at $0.084 per coin, with social sentiment trending positively. However, without sustaining momentum, the price may revert to a bearish trend in the coming days.
Disclosure: This article is for educational purposes only and does not serve as investment advice.
