Crypto.com: "Top? Nah, not yet"
Assets covered: Crypto.com Coin (CRO)
Metrics used: Social Volume, Exchange Inflow, Active Deposits, MVRV, Daily Active Addresses
CRO is trendy last days or even weeks. It has been on top of Santiment Emerging Trends, thanks to powerful marketing:
But probably CRO has started to fade away from the crowd attention. This is how it looks like on the social volume chart:
With every sort of a subsequent price spike there is a higher spike in SV. There's even a small dump and then another leg up. It's not necessarily that the SV spike is going to end the rally. At some point it will. But it's not going to immediately crash price. We might see just a short term correction, a little bit of a consolidation and then we move back up.
Perhaps CRO's social volume chart can be compared with Solana's rally:
Every time we see a big exchange inflow spike we see a pretty considerable retraction.
And some most notable examples are on active deposits chart:
Now we're actually not seeing a retraction, so may be it's the end of the rally? Like people really stopped dumping?
Almost +140% at the moment of writing this! This looks ridiculously high. Crazy overbought. Risk zone. We're officially in discovery mode for MVRV.
Has overshoot it's previous top in 2020. We peaked at almost 290%. "Slightly higher" than we could expect. It basically screams "Overvalued!"
Daily Active Addresses:
CRO onchain activity looks at least decent. We are seeing a continued uptick in DAA. And we doubt this is sustainable.
Let us compare DAA to other top coins to show how ridiculous CRO is. This is a list of ERC-20 tokens filtered by condition 'DAA > 4400 last 7 days':
So we think it's unlikely sustainable.
We can see multiple signs of CRO top on a bunch of different metrics. The question now is what happens next. Probably if CRO pushes up to ATH again, we could see another wave of sell offs, waves of chatter, and waves of profit taking. And that's definitely going to impact price in short term.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.