- Cronos price hits its highest since May 2022, but key resistance tests stellar run-up.
- Trump Media’s joint venture to launch CRO Treasury Company sparked a strong rally.
- A daily close above $0.2340 is needed to sustain buying; otherwise, overheated momentum may trigger a Cronos pullback.
- Strong fundamentals and technical breakouts defend the overall bullish trend despite an anticipated short-term retreat in price.
Cronos (CRO) price jumps over 10% intraday to $0.2220 early Wednesday, despite recently retreating from its highest level since May 2022.
CRO surged 30% yesterday and hit a multi-month high hours ago, fueled by news of the first-ever Cronos Treasury Company to be formed through a joint venture between Trump Media and Technology Group (DJT), Yorkville Acquisition, and Crypto.com.
Also read: Trump Media, Crypto.com and Yorkville Announce $6.4 Billion CRO Treasury Strategy; Know The Details
Cronos rally also fuelled trading volume and market capitalization, boosting investor confidence in the altcoin. According to Santiment, the daily trading volume for CRO jumped to the highest level since November 2021, with $969.52 million in the latest figures, whereas the market cap also hit a 40-month high of $7.4 billion.
Still, the CRO’s struggle to stay beyond a nine-month horizontal resistance and overheated momentum indicators suggest a short-term price pullback, even as the fundamental news and previous breakouts keep the broad bullish trend intact.
Cronos Price: Daily Chart Tests Buyers
A clear upside break of the nine-month resistance, now support near $0.1750, combined with bullish signals from the Moving Average Convergence Divergence (MACD), keeps Cronos buyers hopeful. However, the Directional Movement Index (DMI) momentum indicator appears overheated and could trigger a short-term pullback if CRO fails to close above the key $0.2340 hurdle, which marks the tops from late 2024 on a daily closing basis.
That said, the DMI indicator shows the Downmove line (D–, orange) dropping to about 8.0, well below the neutral 25.00 level, indicating little bearish pressure. Meanwhile, the Upmove line (D+, blue) stays very high near 45.00, and the Average Directional Index (ADX, red) is at 35.00, signaling an overheated bullish trend.
Apart from the overheated DMI signals and a failure to stay beyond the $0.2340 hurdle, the CRO’s breakout of the upper Bollinger Band (BB) also suggests a pullback.
With this, the $0.2000 psychological magnet may gain the market’s immediate attention before the $0.1750 resistance-turned-support.
Even if the CRO drops beneath the $0.1750 support, the middle BB and a seven-week ascending trend line, respectively near $0.1600 and $0.1460, could challenge the sellers from taking control.
Additionally, the 50-day Simple Moving Average (SMA) and the lower BB, close to $0.1390 and $0.1220 in that order, act as the final line of defense for the Cronos buyers.
Alternatively, the CRO’s daily closing beyond $0.2340 will allow it to aim for the late 2021 bottom surrounding $0.2500 and the $0.3000 threshold. Beyond that, a horizontal resistance area comprising multiple levels marked since November 2021, near $0.3100-$0.3300, will be a tough nut to crack for the buyers.
Cronos Price: Four-Hour Chart Highlights Bullish Breakout
On the four-hour chart, Cronos defies a seven-week-old bullish trend channel to hit a multi-month high. In doing so, the CRO cheers the bullish MACD signals, before retreating on the overheated DMI signals, as discussed on the daily chart.
With this, the quote’s latest pullback may aim for the stated bullish channel’s top, surrounding $0.2070, before the $0.2000 psychological magnet. Following that, the mid-month high around $0.1730, the 200-bar SMA of $0.1495, and the channel’s lower boundary surrounding $0.1480 may act as additional downside filters, apart from the daily chart support levels.
Meanwhile, a sustained break of $0.2340 can help the CRO bulls aim for the higher levels discussed on the daily chart.
Conclusion
The CRO’s strong rally takes clues from bullish fundamentals, but faces a key test at the $0.2340 resistance. That said, a short-term pullback risks to prevail due to the overheated momentum. Still, the broader trend stays bullish.
Also read: Market Digest: Bitcoin Holds at 111K as Trump’s Fed Clash Raises Independence Concerns
