Crypto.com and Cronos (CRO) Are Next to Get Hit with Rumors
Key Insights:
The crypto rumor mill hit Crypto.com native token Cronos (CRO) this morning.
However, investor sentiment and CRO reaction were masked, as recession fears gripped the broader crypto market.
Technical indicators are bearish, with CRO sitting below the 50-day EMA.
It has been a tough time for crypto exchanges, as the effects of the lengthy crypto winter take their toll on small and large crypto-linked entities.
For crypto investors and traders who park their money on exchanges, the threat is no longer just the loss of funds through a market sell-off.
Investors now risk losing access to assets as exchanges announce withdrawal freezes. In recent weeks, we have seen how damaging the rumor mill can be to the liquidity profiles of crypto exchanges.
This is because several exchanges denied rumors of plans to freeze withdrawals, only to freeze the withdrawal of assets.
Today, one of the largest crypto exchanges addressed rumors of liquidity issues.
Leading Crypto Exchange Crypto.com Falls Victim of the Rumor Mill
Crypto.com CEO Kris Marszalek turned to social media today to address rumors of a change to withdrawal policy.
Addressing Crypto.com users on Twitter, Kris tweeted,
“Our withdrawal policy is the same as it always was, we didn’t implement any new restrictions.”
Kris added,
“We run no special deposit promotions (and we make sure all regular ones that we do run are profitable).”
The Crypto.com CEO went on to say,
“People are free to FUD all they want, but this doesn’t change the facts: Crypto.com will be a top5, maybe even top3 crypto platform globally by revenue this year. Only two other players have higher user count than us.”
In a series of tweets, Kris concluded by saying,
“The industry will be better off after sub scale companies with broken business models are out. There will be some short term pain, and we’ve seen some of it play out already, but the whole space will emerge stronger because of this much needed cleanup.”
In May, Cronos (CRO) tumbled as investors responded to Crypto.com updates on staking rewards. Shortly after the announcement, the exchange u-turned on the decision. The damage was done, however, with CRO well below levels seen after the announcement.
CRO Price Action
At the time of writing, CRO was down 3.89% to $0.1184.
A bullish start to the day saw CRO rise to a high of $0.1192. Falling short of the First Major Resistance Level at $0.1213, CRO slid to a low of $0.1137.
CRO left the Major Support Levels untested this morning.
Technical Indicators
CRO will need to move through the $0.1159 pivot to target the First Major Resistance Level at $0.1213.
Broader market sentiment would need to improve to support a move through the morning high of $0.1192.
In the event of an extended rally, CRO should test the Second Major Resistance Level at $0.1241 and resistance at $0.1250. The Third Major Resistance Level sits at $0.1323.
Failure to move through the pivot would leave the First Major Support Level at $0.1131 in play.
Barring another extended sell-off throughout the day, CRO should avoid sub-$0.11 and the Second Major Support Level at $0.1077.
The Third Major Support Level sits at $0.0995.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal.
At the time of writing, CRO sat below the 50-day EMA, currently at $0.1160.
This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA, CRO negative.
A move back through the 50-day EMA would support a return to $0.12 levels to target the Major Resistance Levels.
However, the morning slide through the 50-day EMA will likely leave the Major Support Levels in play.
This article was originally posted on FX Empire
