The price of Cronos (CRO) is down 19% this month. Data on chain suggests that long-term investors are now losing confidence. What is the most likely CRO price prediction for the coming weeks?
On Friday, May 26, the price of Crono (CRO) fell to $0.06 for the first time since January 2023. With long-term holders exiting their positions, here is a data-driven analysis of the next step where CRO prices could go.
Long-Term Cronos Investors Are Selling
The 18% price drop in May can be attributed to bearish trading activity among long-term investors on the Cronos network.
Indicatively, between May 1 and May 26, CRO Middle Age Medal 22% fell from 45.5 to 35.5. In simple terms, Middle Age Medal it evaluates how long CRO coins have remained in circulation in their current wallet addresses.
When it falls significantly, as seen above, it shows that most long-term investors are losing confidence. If the trend continues, it could spread bearish momentum across the Cronos network.
The New User Acquisition Rate is decreasing
Moreso, the number of new participants joining the Cronos network has decreased significantly since the beginning of May.
The chart below shows how CRO Network Growth has fallen by 65% since the end of April. Specifically, on April 28, 192 new wallet addresses were created on the Cronos blockchain network. Meanwhile, only 68 new addresses were recorded on 26 May.
Network growth tracks the number of new wallet addresses created daily on a blockchain network. As can be seen above, it shows that the project is losing market share when it continuously falls.
Clearly, as the CRO price decline increases, the Cronos blockchain network is struggling to attract new users.
In short, CRO prices could get stuck in a downward spiral unless the Cronos team can make the necessary changes to protect investor confidence and stimulate new demand.
CRO Price Forecast: Bears Could Trigger Pullback To $0.052
Given the slowing demand and bearish activity among long-term Cronos investors, a decline towards $0.052 appears to be the most likely CRO price projection.
Into the BlockIn/Out of the Money Around Price (IOMAP) data suggests that CRO will experience support around the $0.057 area. As seen below, 1,690 investors who bought 3.88 million CRO at an average price of $0.057 could start a fight.
If the bearish momentum prevails, however, the price could slide further towards $0.052, as predicted.
Conversely, the bulls could invalidate the bearish CRO price projection if it breaks above the critical $0.063 resistance zone.
But a potential selling wall from the 3,590 investors who bought 64.9 million CRO at an average price of $0.063 is likely to prevent that.
Although unlikely, the CRO could still rally towards $0.07 if the bulls manage to overcome that resistance level.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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