Key Insights
- Cronos [CRO] bears paid as much as a 3% premium to the bulls on November 14.
- KuCoin customers were also spooked last week due to the exchange’s exposure to FTX.
- KuCoin token has also exploded in price over the last day, after falling 5% over the previous week and trading at $7.324.
CRO and KuCoin are in free fall. After last week’s events, many now see the bankruptcy of FTX, the once-dominant cryptocurrency exchange formerly valued at roughly $32 billion, as a road sign that warns against approaching or interacting with the crypto market without caution.
Despite the discrepancies in the balance sheets of its sister trading company Alameda Research last week, FTX seemed normal early last week.
However, people needed to prepare for what eventually led to FTX’s bankruptcy. Many were taken off guard, and several billions of dollars were lost.
Despite the dust of the FTX saga now settling, such a big crash will eventually have a ripple effect. One of these ripple effects is the dip in the prices of the native cryptocurrencies of other exchanges like KuCoin and Crypto.com’s [CRO].
Cronos and Kucoin Tokens Take Hits
Cronos [CRO] bears paid as much as a 3% premium to the bulls on November 14. Naturally, this reflects extreme bearishness in CRO’s futures market.
Cronos CRO, the native token of Crypto.com, is exercising restraint as of November 14 in the face of growing sell pressure that has been building since the dramatic collapse of the FTX last week. However, the CRO/USDT pair aims for a historic price recovery.
CRO’s price has fluctuated between a relatively massive 8% gain and a 5% loss over the last day and is currently trading at around $0.07 after plummeting below $0.05, its lowest point since April 2020.
CRO’s current price leaves the cryptocurrency at a 60% decline from November’s peak of roughly $0.178.
The relative strength index (RSI) for CRO fell to almost 30, or close to the “oversold” zone in last week’s dip.
As illustrated below, a similar decline in June of the previous year was followed by a 75% recovery rally from $0.099 to $0.162.
This also means that CRO’s price could recover to $0.111, up over 50% from the current price levels, as its next upside target.
Kucoin Tokens Plunges
KuCoin customers were also spooked last week due to the exchange’s exposure to FTX.
These customers worried that the exchange and its native token (KCS) might suffer along with FTT and SOL.
These factors, coupled with the overall bearish market mood and BTC’s struggle to break the $18K resistance, caused KCS to plummet along with the rest of the market.
According to data from Santiment, KCS’s weighted sentiment decreased, pointing to a pessimistic view of the coin. In line with the continuous price decline over the last week, more active addresses have been created, which is probably a sign that users are getting rid of their tokens.
Kucoin token has also exploded in price over the last day, after falling 5% over the previous week and trading at $7.324.
The Relative Strength Index (RSI) had made a little retreat from the oversold region last week before reversing course, moving back towards it, and rebounding in this week’s bullishness.
In addition, KCS might have experienced a significant sell-off during its sharp price decline. According to data from Coinmarketcap, KCS’ market cap decreased by almost $50 million, falling from $770 million to roughly $720 million.
After tanking into the negative territory last week, the 30-day market value to realized value metric (MVRV) on KCS has moved into a positive buying territory. This shows new buying pressure on the cryptocurrency.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
