The Crypto.com coin was one of the few tokens to bounce back against the tide, register large gains, and hit a new ATH when Bitcoin sparked major market sell-offs. CRO, after hitting an all-time high of $ 0.974 on Nov. 24, has seen a minor consolidation at the time of this writing, which many market participants fear could mark the end of the CRO rally.
Marketing marker profits
After a high profile marketing stunt, CRO’s marketing campaign seemed to be paying off as its value continued to grow. Earlier this week, Crypto.com signed a 20-year contract worth $ 700 million to name the former Staples Center in Los Angeles.
Source: Sanbase
However, almost a week after the renaming was announced, it seemed like the social attention had waned. In particular, there was a positive correlation between the price of the coin and the social volume. Now that social volume is falling, the price of CRO seems to be losing ground too. Since the ATH, the coin has fallen to 13th place by almost 15% within a day.
However, the trend mentioned above wasn’t that bad. Data from Santiment showed that with each subsequent price increase, the social volume increased more. Post where a short-term correction is also noted while a waning social awareness wouldn’t necessarily end the rally, however, it could potentially be affected.
Interestingly, CRO’s social volume chart shows a similarity when compared to Solana’s rally. So could CRO make similar profits?
On-chain activity shimmers, but ..
In CRO, any time a large spike in exchange influence is observed, there is usually a substantial retraction. Additionally, active deposits for the asset have also seen spikes in recent weeks, suggesting that sell-offs may be imminent.
Source: Sanbase
Additionally, last month there was a return in retail volume by ownership by holding period. This retail re-entry into the scene highlighted how the recent rally could be due in part to the retail FOMO.
Source: IntoTheBlock
That being said, the active addresses in the chain were still holding higher levels, but with inconsistent spikes, this left analysts skeptical of continued higher activity in the near future. The network appeared unusually active at the time of writing as the number of transactions hit ATH. The number of large transaction volumes declined, which can often indicate that larger players were more cautious after the ATH.
Source: IntoTheBlock
Is the end near?
CRO’s on-chain activities showed progress as the DAA continued to rise. However, it seemed unlikely that this would continue, mainly because the market had started to look overheated. Additionally, at the time of writing, CRO’s volatility was exhibiting ATH levels which would mean there has been large price volatility in the short term.
Source: IntoTheBlock
The $ 0.77 level could serve as strong price support if the CRO continues to decline. At the moment, however, with prices falling in some cases, it remains to be seen whether these are just short-term corrections or whether the CRO rally will soon come to an end.
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