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Cronos spiked 5% in the past week to continue its bullish trajectory. An in-depth on-chain analysis reveals that the number of long-term holders is increasing. How could this impact CRO price?
There was a positive divergence between CRO price and daily active addresses during the recent downswing.
Cronos Did not Lose Traction During the Recent Downswing
Cronos (CRO) is the native cryptocurrency of Cronos Chain — a decentralized, open-source blockchain network developed by Crypto.com exchange. On March 22, CRO price surged 5% as the crypto markets appeared to react to the news that the exchange had obtained a preparatory license in Dubai. Underlying on-chain metrics suggest that there may be more gains ahead for CRO holders.
During the recent 13% price correction between March 1 and March 20, the yellow line in the Santiment chart shows how daily active addresses grew in the opposite direction, from 473 to 726.
Typically, if a blockchain network begins attracting traction during a downswing, it signals an imminent recovery. Consequently, this positive divergence could propel CRO into more gains in the coming weeks.
Similarly, the growing number of long-term holders on the Cronos network also validates the bullish stance.
The IntoTheBlock chart below depicts that the number of long-term wallet addresses holding CRO increased by more than 20,000 between Feb 10 and March 24. During the same period, short-term traders decreased from 6,430 to 4,770.
An increase in the number of long-term holders is a bullish signal. It implies that stakeholders are growing increasingly confident about the project’s future prospects.
If Cronos chain keeps up this trend, it could attract new investors to the network. Ultimately, the growing demand could impact the price of CRO positively.
CRO Price Prediction: Road to $1
According to the Exchange Market Depth data aggregated by IntoTheBlock, CRO could soon break above $1.0. The Market Depth chart depicts critical buy walls and sell zones based on the current limit orders placed by traders on exchanges.
As seen below, if CRO can break out of its current resistance at $0.70, it will likely face minimal resistance until it reaches $0.85, where sellers are looking to offload 656 million CRO tokens.
If that significant resistance does not impede the rally, CRO can approach $1.0. At this point, exchange traders have put 486 million coins up for sale.
For the bears to force a downswing, CRO must lose its current support and drop toward the $0.60 zone. At the $0.60 zone, buyers have placed orders for over 60 million CRO. If this support does not hold, CRO holders can expect a major downswing to $0.50.