CROs have emerged as the top market gainer, and have skyrocketed nearly 50% over the past 24 hours. The rally will be driven by new strength in the broader crypto market and news from Trump Media Group (TMTG) to win CRO tokens.
Surges are attracting bullish attention, but on-chain signals point to markets that may already be overheated, increasing the possibility of short-term pullbacks.
Cro Rockets of $6.42 billion Trump media talk
CROs have skyrocketed nearly 50% in the last 24 hours, tied to reports linking Trump media to a massive CRO acquisition.
Beincrypto reported that previous news suggests Trump media is preparing to buy Croken worth $6.42 billion.
However, the new disclosures show that the plan is more measured. Rather than an immediate $6.42 billion acquisition, the company will start with about $200 million in cash and a token position equivalent to about 19% of the CRO’s market capitalization.
Traders accumulate long, causing liquidation risk
As CROs surged, the futures trader rushed to long positions, pushing the long/short ratio of tokens to a height of 30 days. At the time of writing, this is $1.08 per Coinglass.
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The long/short ratio measures the balance between traders betting on price increases and expected declines. The above reading shows that more traders have acquired longer positions and are signaling strong bullish convictions, while the value of less than one indicates high demand for shorts.
The long/short ratio of CROs suggests confidence in upward momentum, but exposes the market to greater liquidation risk. If that price is faced with a reversal, a severe concentration of Long could lead to many forced divestments and exacerbate market volatility.
CROs enter an excess zone
Measurements from the CRO’s relative strength index (RSI) on the daily chart indicate that Altcoin has entered overbuying territory. At press time, this indicator is at 80.77.
The RSI indicator measures the market conditions for asset acquisitions and overselling. It ranges from 0 to 100. Values ​​above 70 suggest that the asset is over-acquired and paid for a price drop, while values ​​below 30 indicate that the asset is over-sold and may witness a rebound.
At 80.15, the CRO’s RSI suggests possible corrections in the short term, exacerbating buyer fatigue. The reversal of CRO’s current trend could drop to the next major support floor, $0.195.
Meanwhile, if buyers continue to accumulate CROs, they could regain $0.23 and raise its last seen high in May 2022 at $0.27.
The price of Post-Cronos (CRO) in Trump media hype has skyrocketed, but the risk of liquidation first appeared in beincrypto.
