Key Takeaways
CRO’s recent weak price performance has been largely driven by massive liquidity outflows from the derivatives market. At the same time, spot investors continue their week-long accumulation, adding $2.49 million worth of the asset to their portfolios.
Cronos [CRO] recorded an underwhelming performance in the past 24 hours, declining by 12%, at press time. This marks a sharp reversal from the impressive 107% rally it posted just a week ago.
Analysis suggests there is now a clear rift between the two key market segments, spot and derivatives, which will likely influence CRO’s price direction in the days ahead.
Liquidity outflow weighs on CRO
CoinGlass Open Interest (OI) data indicates that the recent decline has been driven by notable liquidity outflows from the derivatives market.
As of writing, CRO’s OI dropped by about $20 million, falling to $157 million. A significant outflow usually reflects uncertainty in the market as traders avoid liquidation risks.
There has also been a parallel decline in derivatives trading volume. Also, the Long-to-Short Ratio stood at 0.9802, showing more selling activity than buying.
Although the drop in Trading Volume remained relatively slight, a continued move downward, further away from the 1.0 level, would point to intense selling pressure in the derivatives market.
Spot investors keep funding CRO
Spot investors, however, have taken a different approach. They
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Author: Olayiwola Dolapo
