CRO - Is it time to chill?
Assets covered: Crypto.com (CRO)
Metrics used: Price, MVRV 7D, Supply on Exchanges, Daily Active Addresses, Network Growth, Social Volume
After months of consolidation, CRO eventually broke out with higher highs and strong volume, it's hard to deny such a strong uptrend it has established.
However, such a strong move also calls for a time to take a chill pill.
Supply on Exchanges
There were tell-tale signs prior to the run up if one were to check Supply on Exchanges.
A strong consistent dip in Supply on Exchanges has helped to reduce sell pressure while Crypto.com's marketing campaign were out in full force (recently bought the naming rights to Staples center) - Perfect recipe for pushing prices.
CRO's MVRV 7D which measures the short-term profit/loss of holders is showing that we are in the danger zone, as all short-term holders are in the profit at the moment - Which could incentivise them to take some profits.
Very impressive Network Growth by CRO recently, consistent higher highs in Network Growth as Price moves up is a healthy sign. However, it's important to note that once there's a deviation (falling Network Growth, rising price), it could be a sign of weakness before it eventually tops out.
Daily Active Addresses (DAA)
CRO's Daily Active Addresses, mirrors that of Network Growth, indicating that most activity is coming from new participants that probably bought in during the rally. Will they eventually become bagholders? Who knows, but this new group of participants will form as the "sell pressure" if price starts to tank and they panic.
Eventually, we want to see a higher DAA than before once price consolidates to indicate a healthy network.
The FOMO is real as seen from the massive spikes in social volume over this month as compared to the previous months. So much so that it was appearing more than once as one of the top words in our Social Trends ranking.
Historically, if a coin appears for several days in Social trends, it's highly likely that the local top is in.
Overall, very nice price action from CRO after consolidating for months. However, it's likely to cool off before the next run.
On-chain/Social metrics are also indicating that quite a number of people FOMO'd in, and will likely act as sell pressure if things go south.