Does a high psychosocial CRO help grow like SOL?
CRO is one of the few tokens that rebounded as price rebounded creating new ATH while Bitcoin triggered sell-offs across much of the market. After hitting an all-time high of $ 0.974 on Nov. 24, CRO has taken a minor correction at press time, causing many market participants to fear that this rally may be over.
Marketing brings profit
Crypto.com (CRO) marketing campaigns appear to be reaping the rewards as value continues to grow. Earlier this week, Crypto.com signed a 20-year $ 700 million contract to name the Staples Center stadium in Los Angeles. Since then, circulating market capitalization has increased 80% and social volume has also grown higher.
The source: Sanbase
However, almost a week after the name change was announced, attention seems to be waning. It is noteworthy that there is a positive correlation between price and social volume. Because with the current falling social media volume, the price for CRO is also gradually falling. Since ATH, the coin has lost almost 15% within one day at number 13.
However, the above trend isn’t bad. Data from Santiment shows that with each subsequent price increase, social volume increases. Then there is a short-term correction, whereby the declining social awareness does not necessarily end the rally, but can only influence it in the end.
Interestingly, the graph of the social mass of CRO versus the increase in SOL shows similarities. So can CRO increase in a similar way?
On-chain operations are ambiguous, but …
For CRO, every time the capital inflow is large, it usually results in a significant drop in price. In addition, active deposits for the asset have also increased in recent weeks, suggesting a possible sell-off.
Additionally, the retail audience turned back in the last month, suggesting that the recent rebound could be partly due to the retail FOMO.
The source: IntoTheBlock
As a result, the number of active addresses in the chain has remained high, but has increased inconsistently, so that analysts are skeptical of whether they can remain active for the foreseeable future. The network appears to be unusually active as the number of transactions reaches ATH at the time of writing. The number of large trades has decreased, signaling larger players to be cautious after ATH.
To come to the end?
CRO’s on-chain activity shows that the price of active address divergence continues to rise, but it doesn’t look like it will last, mainly because the market is starting to overheat. Additionally, at the time of writing, volatility is reaching ATH which means there is a possibility of high price volatility in the short term.
$ 0.77 will be a strong support if the CRO continues to fall. But if prices continue to fall, will it be seen whether this is just a short-term correction or whether the CRO rally comes to an end?
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According to AMBCrypto