CRO faces sell-off risk after making new high
Crypto.com’s native cryptocurrency CRO hit an all-time high of $ 0.593 on Nov. 18 after the company acquired the naming rights to the Staples Center in Los Angeles.
On Tuesday evening, the exchange announced that it had paid the Anschutz Entertainment Group $ 700 million to rename the Staples Center to Crypto.com over the next 20 years. Accordingly, they can connect with downtown gymnastics franchises including the Los Angeles Lakers and Clippers of the National Basketball Association and Kings Trade franchises of the National Hockey League.
The agreement will increase public awareness of Crypto.com and encourage merchants to raise the price of CRO, a payment token that mediates various assets in the Crypto.com ecosystem.
CRO faces the risk of a temporary sell-off at the top
CRO rose nearly 27.5% the day after it successfully closed and another 20% the next day to a record high of $ 0.627, bringing its market cap to nearly $ 13.15 billion.
The sharp rise in price also helped the CRO close above the falling resistance, creating a broad ascending channel pattern. The bears then returned to confirm the channel’s upper trendline as resistance, but the bulls immediately overwhelmed their attempt and let the price rise.
3-day CRO price chart and ascending channel pattern | Source: TradingView
As a result, the CRO has entered the pricing zone, underscoring the predictions made by traders that the name Crypto.com appearing in the popular sports arena will drive adoption and price increases at the same time.
However, the risk of a sell-off remains as the Relative Strength Index enters the overbought territory.
Daily CRO Price Chart | Source: TradingView
As a result, CRO is showing signs of correction after its high on Thursday, suggesting that many traders have decided to take profits in anticipation that the CRO rally would not last much longer.
Based on the historical price action of CRO, the next lower low towards the 20-day exponential moving average (20-day EMA, blue wave) is close to $ 0.37. This wave used to be an accumulation area for bulls after the price fell.
Cryptocurrency meets sport
Crypto.com was founded in 2016 and is currently the ninth largest spot cryptocurrency exchange in the world. In the past 24 hours, the volume was $ 1.82 billion, compared to $ 31 billion for the leading exchange, Binance.
Cypto.com also has existing sponsorship deals with the Ultimate Fighting Championship, French football club Paris Saint-Germain, and the NBA’s Philadelphia 76ers. These deals are similar to sponsorships between crypto companies and sports clubs, such as BitMEX and Binance’s partnership with Italian Serie A clubs AC Milan and Lazio.
Meanwhile, FTX’s native token FTT has risen more than 750% this year, becoming the official barter brand for Major League Baseball. The company also acquired the naming rights to the FTX Arena from Miami Heat.
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According to Cointelegraph