On March 17, the price of Cronos experienced an uptick following the successful passing of the Strategic Reserves vote, accompanied by a new proposal to burn 50 million coins.
Cronos (CRO), which was previously referred to as Crypto.com Coin, surged to a peak of $0.090, marking a rise of over 26% from its lowest point this month.
The pivotal vote to establish the Cronos Strategic Reserves achieved overwhelming approval. This decision will enable the network to generate 70 billion new CRO tokens, effectively countering the burn event that occurred in 2021.
The newly minted tokens will be released monthly over a span of 10 years, which could potentially lead to market dilution. However, developers have emphasized that these reserves will bolster the ecosystem and aim to attract over 1 billion users in the long term. Among the key initiatives is the creation of exchange-traded funds supported by the CRO token.
One of the main concerns for CRO holders is that the introduction of 70 billion additional tokens will increase supply, which may put downward pressure on the price.
Cronos’s value increased after the developers suggested burning 50 million coins from the 70 million CRO available in the community pool.
This marks the fourth token burn in recent months, with the current valuation of these tokens around $4 million. The vote, anticipated to pass easily, will be open until March 17.
Analysis of Cronos Price
The daily chart indicates that CRO has been trading sideways in recent days, remaining below the 50-day and 100-day Exponential Moving Averages.
Cronos has developed a symmetrical triangle pattern, with its two lines approaching convergence — a potential signal that a significant price movement could be imminent.
The Relative Strength Index and the Moving Average Convergence Divergence (MACD) indicators have displayed a bullish divergence pattern, occurring when oscillators trend upwards while the asset itself trends downwards.
Additionally, Cronos has established a triple-bottom pattern at $0.0710, failing to drop below this level on three occasions since 2024.
This suggests that if it remains above the support level of $0.0710, the coin may rebound. Should this occur, the next target could be the 100-day moving average at $0.1080, approximately 30% higher than the current price. Conversely, a decline below the triple-bottom pattern at $0.0710 would negate the bullish sentiment.