Cronos Token Price Fluctuates as Bulls Struggle to Gain Traction

Cronos, the native token of the Cronos blockchain, has recently experienced a series of price movements that have left traders and analysts puzzled. The token's price has been fluctuating, with small gains in recent days leading to an uptick in open interest (OI), although not by a significant amount. This price action has been accompanied by an increase in trading volume over the past two weeks, as the price bounced from $0.07. However, the lack of strong buying pressure has meant that the bulls have not yet gained the upper hand.

The token has retraced all the gains it made during the November rally, with bears dominating the market and keeping prices below the psychological $0.1 level. The market structure on the daily chart remains bearish, with a recent lower high at $0.0989. The $0.0975-$0.1 resistance zone has been tested multiple times over the past month but has remained a resistance level. The Relative Strength Index (RSI) is on the verge of climbing above neutral 50, indicating a potential momentum shift. However, the On-Balance Volume (OBV) is still in a downtrend, suggesting that a surge in the OBV alongside a price move beyond $0.1 would be encouraging for the bulls.

On the 4-hour chart, there has been a bullish market structure shift followed by a higher low, indicating that Cronos bulls have begun to shift the trend around on the lower timeframes. The OBV has picked up from late February, and a continued uptrend on the OBV and the price would be a welcome sight. However, with the daily structure remaining bearish, traders might want to wait for the price’s reaction from the $0.0975-$0.105 supply zone before entering swing positions.

Open Interest data highlighted a lack of speculative activity over the past month, likely due to the price trend forcing speculators to remain sidelined. The small price gains in recent days saw an uptick in the OI, but not by a significant amount. This suggests that while there is room for bullish hope, traders must exercise caution. The current bounce could be just a move to grab the liquidity around $0.1 before the downtrend continues, and traders need to be prepared for this possibility.