CRO Crypto Breaks Out of Downtrend

CRO crypto has broken out of its 3-month downtrend following a proposal from Cronos to establish a Cronos Strategic Reserve.

According to a March 3 X post, Cronos, the Layer 1 blockchain linked to crypto exchange Crypto.com, is considering creating a Cronos Strategic Reserve wallet. This reserve will be funded by reissuing the 70 billion CRO tokens that were burned in 2021.

The burning event, one of the largest in crypto history, reduced the supply from 100 billion to 30 billion CRO tokens, aiding decentralization ahead of Cronos’ mainnet launch.

The Cronos reserve will have a new 5-year vesting period and aims to fund its roadmap, including plans to pursue a spot ETF launch by the end of 2025.

Voting for the proposal ends on March 17, but it has already gained over 99.76% of votes in favor, which would restore the total token supply to its original 100 billion CRO.

Price Surge and Market Cap

CRO rallied to an intraday high of $0.101 today, a 46% surge from its weekly low, with a market cap of $2.5 billion. Daily trading volume also spiked 773% to over $164 million.

Another reason for the excitement around the token is Cronos’ claim that the Strategic Reserve will support “America’s ambition to become the World Capital of Crypto.” This announcement resonated with traders, particularly as the overall crypto market is surging, bolstered by U.S. President Donald Trump’s recent announcement of a strategic crypto reserve for America, inclusive of cryptocurrencies like Bitcoin and Ethereum.

However, some community members have criticized the proposal, fearing the increased supply could lead to price dilution.

CRO Price Analysis

Technical indicators suggest a bearish outlook for CRO in the short term. The 1-day CRO/USDT chart shows that CRO has broken above a descending trendline formed since December 17, following a head and shoulders pattern indicating bearish momentum.

Despite this, the 200-day moving average remains above the 50-day MA, signaling weak recent price action and strong bearish pressure, with buyers showing limited interest.

Meanwhile, the Supertrend Indicator is in the red, and the Relative Strength Index (RSI) is at a neutral 42, indicating that momentum isn’t strong enough to reverse the bearish trend.

As of now, CRO is priced at $0.084 per coin, with a positive social sentiment according to Santiment data. However, the price could revert to its bearish trend in the coming days if the current hype diminishes.

Read more: Cronos unveils prepaid crypto card service

Disclosure: This article does not constitute investment advice and is for educational purposes only.