Cronos (CRO) on Breakout After Crypto.com Driven Sell-off

Key Insights:

• Crypto.com native token Cronos (CRO) is on an early breakout to lead the broader crypto market through the early session.
• On Sunday, CRO came under selling pressure following news of Crypto.com slashing staking yields.
• Technical indicators are bearish, with CRO sitting well below the 50-day EMA.

Crypto.com (CRO) is on a breakout this morning. On Monday, Cronos (CRO) tumbled by 11.94%. Following a 10.59% slide on Sunday, CRO ended the day at $0.2759.

The sell-off came in response to Crypto.com updates on staking rewards from the weekend.

CRO tanks in response to Crypto.com cutting staking rewards

On Sunday, Crypto.com announced a reduction of CRO card rewards for the Crypto.com Visa Cards, effective June 1, 2022.

For the Obsidian Card tier, which requires a minimum stake of $400,000 in CRO, Crypto.com cut the reward from 8% to 5%.

This morning, CRO found support, however, in response to news of a Crypto.com about-turn on CRO staking rewards.

Crypto.com CEO turned to Twitter, saying:

Instead of eliminating card staking earn rates completely, we will offer a more balanced approach: 8% APY for Private Members (Obsidian, Icy White, and Frosted Rose Gold) 4% APY for Royal Indigo and Jade Green card holders

— Kris | Crypto.com (@kris) May 3, 2022

While today’s update has provided some support, CRO remains some way off levels seen before Sunday’s announcement.

CRO price action

At the time of writing, CRO was up 4.86% to $0.2893. A bullish start to the day saw CRO rise from an early morning low of $0.2751 to a high of $0.3022 before easing back.

Technical indicators

CRO will need to avoid the $0.2874 pivot to target the First Major Resistance Level at $0.3095.

Broader market sentiment would need to improve to support a move through the morning high of $0.3022.

In the event of an extended rally, CRO should test the Second Major Resistance Level at $0.3430. The Third Major Resistance Level sits at $0.3992.

A fall through the pivot would bring the First Major Support Level at $0.2536 into play. Barring another extended sell-off throughout the day, CRO should avoid sub-$0.25. The Second Major Support Level sits at $0.2314.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. Following five consecutive sessions in the red, CRO sits below the 50-day EMA, currently at $0.3503. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, CRO negative.

A move through the 50-day EMA would shift market sentiment and support a near-term return to $0.40 levels.