Key Takeaways
- Cronos surged after being included in Trump’s proposed Crypto Blue Chip ETF. Whale accumulation, rising derivatives’ activity, and strong buy-side momentum hint at a speculative rally, if sustained.
Cronos [CRO] soared by 16.52% in 24 hours, at press time, hitting a monthly high of $0.1002 before slightly retracing to $0.929.
As a result, this price uptick pushed the altcoin’s market cap to $3.1 billion, marking a 14.2% rise.
Over the same period, CRO’s trading volume soared 2964% to $39 million, reflecting growing demand and fresh capital injection.
But what triggered the altcoin’s explosive surge?
Trump’s crypto blue-chip ETF inspires Cronos rally
According to AMBCrypto’s analysis, the recent price hike was primarily driven by Speculation over President Donald Trump’s Truth Social ETF.
As per official reports, Trump’s Truth Social filed for a Crypto Blue Chip ETF that includes 5% Cronos, 2% Ripple [XRP], 70% Bitcoin [BTC], 15% Ethereum [ETH], and 8% Solana [SOL].
Following the announcement, investors quickly entered the market, driven by fear of missing out (FOMO) and a desire to capitalize on the momentum.
Demand for CRO surges
Before the recent shift, sellers had maintained control of the market, with Cronos experiencing three consecutive days of negative buy-sell delta.
However, the dynamics changed notably in the past 24 hours, as buyers reentered the market and overtook sellers, signaling a potential shift in momentum.
Source: Coinalyze
According to Coinalyze, Cronos recorded a cumulative total of 65 million in Buy Volume relative to 60 million in Sell Volume.
As a result, the altcoin’s Buy-Sell Delta surged to 5 million, a clear sign of aggressive spot demand and a shift in market momentum.
Such a strong buying spree created fresh demand as investors entered the market to buy the news. Amid increased accumulation, Cronos’ Exchange Flow Balance dipped into negative territory, reaching -131k at press time.
Source: Santiment
When Exchange outflow outpaces inflow, it reflects substantial accumulation and weakening sell-side risk.
Historically, such investor behavior has often preceded higher prices as pressure on prices dips.
Derivatives are not sitting idle
Importantly, when we examine Cronos’ derivatives market, we determine that investors flowed into the market to position themselves strategically.
Source: CoinGlass
As a result, the altcoin’s Open Interest saw a significant increase, accompanied by a sharp rise in trading volume, indicating heightened participation in the futures market.
Also, at the time of writing, the Long/Short Ratio climbed above 1, suggesting a growing preference for long positions. This typically reflects investor optimism, as more traders bet on potential price increases.
A speculative bubble or…
According to AMBCrypto’s analysis, Cronos saw a substantial upsurge as speculative buyers entered the market and pumped fresh capital.
As a result, the altcoin’s Stochastic RSI spiked to 75.12, at press time, after making a bullish crossover, signaling a strengthening upward momentum.
Source: TradingView
Equally, the Relative Strength Index (RSI) surged to 65, then retraced to 59, signaling the presence of buyers’ momentum and the potential for its continuation.
Therefore, if investors can hold the current accumulation momentum, Cronos will bounce back and reclaim $0.1 and $0.109.
However, if the speculation fades as fast as it appeared, the market will cool down and retrace to $0.0919.
