Is Crypto.com (CRO/USD) token about to tank as massive withdrawals are reported?
Crypto exchanges are again coming under pressure. After the collapse of FTX, the question has always been, who is next? It is, of course, a difficult question to answer, but concerns will continue to mount as cryptocurrencies winter ravages.
Crypto.com (CRO/USD) has remained steady even as its sister crypto exchange went under the waters. Never forget the numerous sports sponsorships that gave Crypto.com the limelight. The exchange has also had its fair share of challenges. That includes a community backlash following slashed crypto rewards back in May. The reduced earnings happened amid a ravaging bear market.
Another controversy brewed up for Crypto.com over the weekend. Amid the FTX collapse, massive withdrawals were reported on Crypto.com. The withdrawals started after the exchange CEO Kris Marszalek admitted to accidental transfers of 320,000 ETH worth $400 million. The transfers were made to a public address of a competitor exchange, Gate.io. The lumpsum represented 80% of Crypto.com ETH reserves.
Nonetheless, it appears the transfers were meant for a new cold storage address, according to the CEO’s tweet. The CEO also indicated that the funds were being returned to the exchange’s cold storage.
Even as the situation unfolds, CRO is unscathed. The token is up 12% in the day, despite losing 40% of its value in a week. It indicates that the fears ignited by the news have been abated. But should you buy the token?
CRO price analysis amid intra-day gains
Aside from the latest cryptocurrency news, we need to examine CRO within the larger sector dynamics and price movements. The sector bear market remains, while CRO just touched the lowest in the year.
Source – TradingView
CRO has been trading with high volumes since touching a yearly low of $0.056. The level coincided with oversold conditions for the token.
However, the general market is bearish for CRO. The trend is bearish, with the momentum weakening further since CRO broke below $0.1.
What next for CRO?
CRO recovery may be short-lived, given the weak crypto sentiment and bearish momentum. Sustained recoveries are possible if the token breaks above $0.1. The token is not an attractive buy.
Where to buy CRO
Founded in December 2017, CoinEx is a global and professional cryptocurrency exchange service provider. CoinEx supports multiple languages and are providing global trading services in nearly 100 countries/regions.
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