- Cronos saw an uptick in trading volume in the past two weeks as the price bounced from $0.07.
- Continued increases in buying volume and speculative activity would point toward bullish CRO sentiment.
Cronos [CRO] gave conflicting price action signals across different timeframes. The lack of strong buying pressure meant that the bulls did not have the upper hand yet.
The token has retraced all the gains it made in the November rally. The bears were dominant and determined to keep prices below the psychological $0.1 level.
The trading volume has increased over the past two weeks, accompanying a price bounce from $0.07. Was this a sign of bulls bidding at the lows?
Cronos bulls have a tough task ahead
The market structure on the daily chart was bearish. The recent lower high was at $0.0989. The $0.0975-$0.1 resistance zone has been tested multiple times over the past month but remained a resistance level.
The RSI was on the verge of climbing above neutral 50 to indicate a momentum shift. However, the OBV was still in a downtrend. A surge in the OBV alongside a price move beyond $0.1 would be encouraging for the bulls.
It is possible that the current bounce was just a move to grab the liquidity around $0.1 before the downtrend continued. Hence, traders need to be prepared for this possibility.
Source: CRO/USDT on TradingView
The 4-hour chart showed a bullish market structure shift (white) followed by a higher low. Cronos bulls have begun to shift the trend around on the lower timeframes. The OBV has picked up from late February.
A continued uptrend on the OBV and the price would be a welcome sight.
Yet, with the daily structure remaining bearish, traders might want to wait for the price’s reaction from the $0.0975-$0.105 supply zone before entering swing positions.
Source: Coinglass
The Open Interest data from Coinglass highlighted a lack of speculative activity over the past month. This was likely due to the price trend forcing speculators to remain sidelined.
The small price gains in recent days saw an uptick in the OI, but not by a significant amount. Once again, traders must exercise caution, but there was room for bullish hope.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
