Cronos CRO Price Dips 2.35% to $0.05035: Key Technical Takeaways for Traders

The price of Cronos CRO has declined 2.35% over the past 24 hours to $0.05035 according to data from CoinMarketCap. This price drop comes after CRO saw mostly sideways trading over the past week with a 1.76% decline over the past 7 days.

CRO remains down significantly from its all-time highs, currently trading 84% below its peak price of $0.32 reached in November 2021. Over the past month, CRO has dropped 14.11% and declines have accelerated over the past 6 months, with CRO down 36.81% over that timeframe.

Let's take a closer look at some of the key technical indicators for CRO to better understand the price action and what traders should watch moving forward.

Short-Term Momentum Turns Negative

In the past 1 hour, CRO has declined 0.02% against the US dollar, indicating that bearish momentum is accelerating after a period of rangebound trading this week. The crypto asset saw high volatility last week and into the weekend, but has settled into a narrower trading range around the $0.05 level so far this week.

The recent dip below the psychological $0.05 mark is notable, as CRO has struggled to break out above this price level since mid-June. The level around $0.05 had provided support throughout the summer but has more recently turned into resistance.

For short-term traders, watching if CRO can reclaim the $0.05 level or if it continues trending lower will be important. A break back above $0.05 could signal a resumption of rangebound trading, while a further breakdown could open the door for a steeper selloff.

Key Support Levels in Focus

With CRO pulling back from its recent range highs, certain support levels come into focus. The crypto asset found support last week around $0.048, which remains the nearest support line.

Below that, $0.045 stands out as the next key support zone for CRO based on the trading price action over the past two months. CRO has rebounded from tests of $0.045 several times since July, so that marks an important technical floor to watch.

If $0.045 were to break down, it could accelerate selling momentum and may lead to a retest of the 2022 low near $0.0375. That would represent a 25% decline from current levels, so bulls will want to see $0.045 hold as support.

Bearish Technicals Reflect Broader Weakness

Zooming out to the daily timeframe, the technical picture remains decidedly bearish for CRO. The cryptocurrency recently saw its 50-day moving average cross below its 200-day moving average, resulting in a "death cross" technical pattern. Death crosses are generally seen as strong bearish indicators that often precede prolonged downtrends.

Additionally, CRO has traded below its 50-day moving average consistently since mid-May. Its 200-day moving average near $0.065 has also been resistance for months. Until CRO can regain these key moving averages, the path of least resistance appears to remain to the downside from a technical perspective.

Prediction: Rangebound Trading Ahead Before a Push Lower

Looking ahead over the next few months, CRO may remain stuck in a relatively tight trading range between around $0.045 and $0.05. This range has largely held for the past two months, and CRO may have trouble breaking out in either direction in the near-term.

However, the broader technical picture points to additional weakness, likely later this year or in early 2024. The death cross pattern and CRO's inability to reclaim key moving averages paint a bearish outlook.

As a result, traders should watch for a breakdown of the expected trading range in the months ahead, which could open the door for a steeper selloff toward the $0.03 zone. While crypto markets as a whole may bounce in the short run, CRO looks poised to underperform with significant technical damage that may take extensive time to repair.

Will Cronos CRO Reclaim the Crucial $0.05 Level This Month?

CRO sits right around the psychologically important $0.05 level after its latest selloff. As discussed earlier, $0.05 has been an area of contention throughout the summer, switching between support and resistance.

Bulls will want to see CRO reclaim $0.05 in the coming days and weeks to signal stabilization and a possible resumption of rangebound trading. However, CRO has struggled to gain traction above this level since its breakdown in June. Several rallies have failed around $0.05, highlighting the difficulty CRO is having regaining short-term momentum.

Watch for CRO to retest $0.05 as resistance if the mildly oversold bounce plays out as expected. Unless CRO can convincingly break above $0.05, the path of least resistance technically favors a move down to test the $0.045 support zone.

What Level Could Spark an Extended CRO Bear Market?

CRO remains firmly in a downtrend, having lost nearly 85% of its value from its all-time high. The question is at what point the current bear market may accelerate into an even more pronounced and prolonged decline.

As discussed earlier, CRO finding support above $0.045 will be key over the coming weeks and months. That level has caught several bounces and remains a key technical floor.

However, if $0.045 were to break down, it opens the door to a rapid move lower, likely to the $0.03 zone which marked the lows for CRO earlier this year. That would represent a roughly 40% drop from current levels and may damage sentiment enough to kickstart an extended bear market.

Therefore, $0.045 is the key make-or-break level to watch. A breakdown below there would be very technically damaging and could spark an accelerated cronos bear market meltdown.

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