Crypto asset Cronos [CRO] experiences a 12% decrease due to a $20 million outflow; potential recovery if...

In a surprising turn of events, the popular cryptocurrency Cronos (CRO) has experienced a 12% decline over the past 24 hours, dropping its Open Interest (OI) to approximately $157 million. However, analysis suggests that CRO may be positioned for recovery.

Despite the recent pullback, spot investors have been accumulating CRO, adding $2.49 million and $4.21 million worth of the asset in the past two days. The total amount accumulated by spot investors over the week has reached $24.3 million, a significant show of support for the cryptocurrency.

The current liquidation pathway shows that CRO's price could potentially swing in either direction, toward a rally or further decline. However, the continued decline in derivatives trading volume and the decreased selling pressure in the derivatives market suggest that a strong rally could emerge in the near term.

The current positive reading of the Open Interest Weighted Funding Rate, at 0.0006%, indicates that traders are leaning toward the bullish side. This, combined with steady spot accumulation and funding inflows favoring long positions, could reflect in CRO's price action in the coming days.

On the other hand, a sharp rally at this stage would leave significant liquidity gaps below. A deeper decline may ultimately benefit the asset, clearing out lower-level liquidity clusters before CRO makes a more sustainable push upward.

It's worth noting that the Long-to-Short Ratio stands at 0.9802, indicating more selling activity than buying. This would allow for a stronger and more extended rally as liquidity gaps on the downside are reduced.

However, data sourced from CoinGlass did not provide information on which institutions or groups acquired the most positions in CRO futures contracts in recent days.

Despite this, the spot investors' accumulation of CRO contrasts with the sell-offs in derivatives, suggesting a divergence in market sentiment between spot and derivatives markets.

In conclusion, while CRO has experienced a significant decline, the combination of spot accumulation and bullish funding data suggests that a strong rally could emerge in the near term. However, investors should exercise caution and monitor market conditions closely.

Crypto asset Cronos [CRO] experiences a 12% decrease due to a $20 million outflow; potential recovery if...