Cronos Price Faces Sell-the-News Reversal Amid Crypto.com Funding

Crypto.com has received its first institutional funding round in its decade-long history after announcing a strategic investment of $400 million from Citadel Securities on July 16th. This news sparked a bullish reaction in Cronos [CRO], which rallied 21.92% to reach a local high of $0.0677 that day.

However, the token's trading volume jumped by 12 times the previous day's volume and it saw a 15.9% retracement in the following 12 hours, falling to $0.057. The Directional Movement Index (DMI) indicated an intense uptrend, but the On Balance Volume (OBV) showed relatively weak buying pressure.

Using Fibonacci retracement levels based on the bearish impulse move from $0.083 down to $0.053, analysts suggest that CRO has not even challenged the 50% level of this move and could continue towards $0.072-$0.077. The lower timeframe price data can be used to settle this point.

On a closer look at the 4-hour chart, both a bearish structure and an obstinate supply zone are evident, with resistance around $0.062-$0.063. Since June, this band has been tested four times, and the recent price spike was a sell-the-news type reaction.