Cronos (CRO) price is down 19% this month. On-chain data 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, Crono (CRO) price dropped to $0.06 for the first time since January 2023. With long-term holders exiting their positions, here’s a data-driven analysis of where CRO prices could go next.
Cronos Long-Term Investors Are Selling
The 18% price drop in May can be attributed to the bearish trading activity among the long-term investors on the Cronos network.
Indicatively, between May 1 and May 26, CRO Mean Coin Age dropped 22% from 45.5 to 35.5. In simple terms, Mean Coin Age evaluates how long CRO coins in circulation have stayed in their current wallet addresses.
When it drops considerably, as seen above, it indicates that most long-term investors are losing confidence. If the trend continues, it could spread bearish momentum across the Cronos network.
New User Acquisition Rate is Dwindling
Moreso, the number of new participants joining the Cronos network has been in a steep decline since early May.
The chart below illustrates how CRO Network Growth has dropped 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 May 26.
Network growth tracks the number of new wallet addresses created daily on a blockchain network. As seen above, it indicates the project is losing market share when it drops persistently.
Evidently, as the CRO price downtrend escalates, the Cronos blockchain network has struggled to attract new users.
In summary, CRO prices could get stuck in a downward spiral if the Cronos team cannot make the necessary changes to shore up investor confidence and spark new demand.
CRO Price Prediction: Bears Could Trigger a Pullback to $0.052
Considering the slowing demand and bearish activity among Cronos’ long-term investors, a decline toward $0.052 seems the most likely CRO price prediction.
IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data suggests that CRO will have experience support around the $0.057 zone. As seen below, 1,690 investors that bought 3.88 million CRO at an average price of $0.057 could put up a fight.
However, if the bearish momentum prevails, the price could slide further toward $0.052, as predicted.
Conversely, the bulls could invalidate the bearish CRO price prediction if it breaks above the critical $0.063 resistance zone.
But a potential sell wall from the 3,590 investors that purchased 64.9 million CRO at an average price of $0.063 will likely prevent that.
Although unlikely, CRO could still rally toward $0.07 if the bulls manage to breach that resistance level.
In line with the 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, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.