LUCKNOW (CoinChapter.com) — Crypto.com’s CRO rallied on Nov 15, followed by signs of retail accumulation across its 24-hour net flows. From a technical viewpoint, if a recovery above $0.08 follows, an extension to $0.0995 can be anticipated over the week.
CRO Bulls to the rescue
Embattled token CRO’s relief rally continued to feature on Nov 15 as gains rose 22% in the last 24 hours.
For the moment, its 48 hours gain sits at 35% – a surprise turnaround after coming under massive bearish speculation last week. However, its price was now parked at the apex of a descending channel, and a breakout above $0.08 could trigger an extended rally.
Last week, CRO’s copped a near 45% decline – its worst fall in nearly six months as traders speculated on whether Ethereum driven exchange Crypto.com would meet the same fate as the bellreguard crypto exchange FTX.
A timely intervention by bulls around $0.056 on Nov 14 initiated a relief rally, following which the token’s price climbed back to its press time level of $0.075.
The positive response came moments after Crypto.com’s CEO Kris Marszalek asserted that the exchange’s balance sheet remained strong and downplayed the impact of FTX’s collapse on the former company.
Amidst the price hike, CRO’s fundamentals, which flashed several red flags last week, showed a few positives.
As per IntoTheBlock, CRO’s netflows over the past 48 hours declined drastically into negative territory. Typically, a downwards spike in netflows points towards accumulation or addresses buying back following large declines. Such moves are often observed prior to a price rebound.
Elsewhere, the funding rates were also stabilising across the board. On Nov 14, CRO’s funding rates had dropped to -3% on Huobi as traders were extremely bearish on the token. However, the rates had recovered to -1% on Monday morning, suggesting that bearish control was easing in the market.
Funding rates are periodic payments to long or short traders based on the difference between perpetual contract markets and spot prices. Positive funding rates imply that traders are bullish, while negative funding rates show a bearish sentiment amongst traders.
There are a few takeaways from the above mentioned points.
While bulls did control CRO’s near-term price action, they were not in the clear just yet. From a technical perspective, CRO’s candles were parked at the top of a descending channel and the same usually triggers a downward spiral.
In such a case, traders can expect a new bottom around the psychological mark of $0.05.
Furthermore, the 4-hour RSI seemed to stabilise around the 50-mark while the Awesome Oscillator was yet to register a bar above its half-line, meaning that bears could still mount a comeback.
To negate a possible resurgence in bearish pressure, bulls must gain a foothold above the $0.08 mark. The aforementioned area led to a 22% hike between Nov 10-11 and toppling the same could induce a potential 33% hike to $0.0995.
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