Cronos (CRO) Price Jumps: Will the Momentum Continue?

As the crypto markets rebound this week, Cronos (CRO) has emerged as one of the top performers, with a sharp 23% price rally. Do bulls have more in the tank?

Cronos (CRO) is a layer 1 blockchain network created by Crypto.com, a prominent cryptocurrency exchange platform. Despite the recent bullish price action, the native coin, CRO, still appears to be flying under the radar of many crypto investors. Could this trigger more CRO price gains in the coming days?

Cronos Is Flying Under the Radar

On-chain data suggests the market sentiment surrounding CRO is still largely negative. Since the start of the month, CRO Weighted Sentiment has declined further into the negative zone from -0.21 to -1.06 as of April 28.

The Weighted Sentiment metric evaluates the social perception surrounding a project by comparing the ratio of positive mentions to the negatives across relevant crypto media channels.

Cronos (CRO) Price vs. Weighted Sentiment. April 2023. Source: Santiment

When Weighted Sentiment stays negative for extended periods, as seen above, it signals widespread Fear, Uncertainty, and Doubt (FUD) across the project’s ecosystem. Once that FUD clears, new investors could enter the market and inadvertently increase the CRO price.

Interestingly, on Thursday, April 27, Crypto.com announced a landmark collaboration with global tech giant Samsung. The deal with see the blockchain firm deliver enhanced trading and analysis capabilities for Samsung’s latest line of flip phones.

This landmark event could turn the tide of social perception around the Cronos network and trigger more price gains.

CRO Still Appears Undervalued

Despite the recent price gains, the Cronos native coin still appears undervalued. According to Santiment, Cronos’s Network Value to Transaction Volume (NVT) ratio is still relatively low.

The NVT ratio is a financial metric that evaluates the fundamental value of an asset by comparing the growth in market capitalization to the transaction volumes.

The blue line in the chart below shows that CRO NVT ratio has been trending downward in the last two weeks. As of April 28, it sits at 4,936, a 60% drop from 12,364 recorded on April 9.

Cronos (CRO) Price vs. NVT Ratio. April 2023. Source: Santiment

NVT ratio is an important tool for investors to evaluate the fundamental value of a cryptocurrency and assess its growth potential. When it declines considerably, it indicates that adoption rates are growing faster than the current volume of transactional activity.

In summary, the negative social sentiment and low values of the CRO NVT ratio imply that the coin is still undervalued. More gains could come if strategic investors interpret this as perfect timing to buy in.

CRO Price Prediction: $0.085 is a Viable Target

According to IntoTheBlock’s In/Out of Money Around Price (IOMAP) data, Cronos bulls will likely push the price rally toward $0.085.

Currently, the 9,000 addresses that bought 478 million CRO tokens are expected to offer considerable resistance around the $0.078 price range.

But if the bullish scenario plays out as expected, CRO price will likely rise to $0.085. However, bearish pressure from another cluster of 1,750 addresses holding 525 million coins could mount a roadblock at this first resistance level of $0.083. Further resistance would be experienced at $0.085 and $0.086 respectively.

Cronos (CRO) IOMAP Price Distribution data. April 2023. Source: IntoTheBlock

Conversely, the bears could invalidate the bullish stance if Cronos loses the $0.077 support. But as stated above, a portion of the 9,000 addresses holding 478 million coins will likely prevent this.

But if the support cannot hold, CRO holders can brace for a further price correction toward $0.070.

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