Cronos (CRO) has had a huge price increase recently, jumping 148% in the past week alone. Currently, the altcoin is trading at $0.17, its highest level since May 2022.
With demand for Cronos growing, this rally appears poised to surpass the $0.20 mark for the first time in two years. This analysis looks at factors that could push prices higher in the near term.
Cronos saw an increase in trading activity
Over the past 24 hours, the value of CRO has increased by 21%. During the same period, its trading volume reached a total of $1.24 billion, a jump of more than 300%.
When a large trading volume favors an asset’s price rally, it signals strong momentum behind its current trend. This shows persistent interest and confidence on the part of traders. It suggests that the property is attracting new buyers and that demand from existing investors is increasing. This demand could lead to a self-sustaining rally as more investors join in, expecting prices to continue climbing.
Notably, the increase in open interest confirms the boom in CRO trading activity. As of press time, this index reached 24.36 million USD, the highest since August 2023.
Open interest tracks the total number of active or unsettled contracts in the market, such as futures or options. As it increases, the total number of active or unresolved contracts increases.
This increase often reflects new participants entering the market or existing traders expanding their positions, bringing in additional liquidity. When open interest and the price of an asset increase together, this indicates optimism and raises the possibility for an extended bull run.
CRO price prediction: $0.20 could be reached soon
At current prices, CRO trades above the $0.14 resistance level, which it surpassed recently. Sustained buying pressure will convert this price level into a support level on a retest, helping the Cronos price rally towards the $0.22 mark.
However, if selling activity gains momentum, the $0.14 price level will not be able to serve as support, causing the CRO price to plummet to $0.04 USD.