CRO Price Drops 15% as Cronos Project Reverses 70B Token Burn

This development comes shortly after the Cronos crypto price surged by 40% between March 2 and 3.

The native token of the Cronos blockchain, CRO, is down 15% in the last 24 hours. This development comes shortly after the Cronos crypto price surged by 40% between March 2 and 3.

The initial surge was caused by Cronos’ proposal to reissue 70 billion tokens previously burned in 2021. However, CRO failed to sustain the surge amid rising criticism of the crypto strategic reserve.

Besides that, U.S. President Donald Trump’s approval of tariffs on other countries has added further pressure on the broader market, leading to the erasure of recent gains, including those seen by CRO.

The new economic measures have sparked uncertainty, with market participants pulling back from adding more liquidity to the market. For Cronos, this macroeconomic factor may weigh heavily on its short-term price action. But what could be next for the Cronos crypto price?

CRO Profit-Taking Surge After Proposal Hype Fades

On March 3, the Cronos chain disclosed that an ongoing proposal to reverse the 70 billion token burn is being considered. According to the project, this reversal could help create a Cronos strategic reserve and send the CRO total supply back to 100 billion.

“Under today’s proposal, an equal number of tokens will be re-issued on Cronos POS into a Cronos Strategic Reserve escrow wallet, bringing the total supply back to the initial supply of 100 billion CRO,” The blog post stated .

However, the project noted that, if approved, it will be subject to a five-year vesting period. The Cronos crypto price jumped from $0.073 to $0.096 following the development.

Hours later, the U.S. tariffs on Mexico and Canada took effect, causing CRO’s price to plummet. Market observers quickly dubbed it the “Trump Dump.”

Amid this decline, CCN observed that the Cronos price is unlikely to rebound in the short term. One reason for this is the rise in profit-taking.

According to Santiment , CRO’s daily on-chain transaction profit was nearly 600 million yesterday. This increase indicates rising selling pressure, which, if sustained, might continue to fall CRO’s value.

Sell Wall at $0.080

In addition, the In/Out of Money Around Price (IOMAP) shows that the Cronos crypto price is likely to face resistance near $0.080.

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According to IntoTheBlock , 12,440 addresses hold over 1 billion tokens in unrealized losses at this maximum value. Because of this, CRO is likely to face a sell wall as holders might try to break even.

If this happens, the price might be challenging to rise past $0.078 in the short term. Should this be the case, the 40% hike the token previously had could be completely erased.

CRO Price Faces Continued Downtrend

From a technical perspective, despite the initial hike, CRO’s price still trades within a falling channel. This technical setup shows that the trend around the token has remained bearish.

In addition, the position of the key Exponential Moving Averages (EMA) aligns with this bias. On the daily chart, the Cronos crypto price trades are below 20 EMA (blue) and 50 EMA (yellow).

This indicates a bearish trend, especially as the longer EMA has crossed above the shorter one. CRO will likely drop below $0.067 if this remains the same.

However, things can change quickly for the token in the short term, especially as voting is ongoing for the above proposal.

If the Cronos community gives the green light, CRO’s price might break past the $0.10 resistance and rally toward $0.17.

But as of this writing, the CCN has observed that the expected outcome is a rejection, which could plummet CRO’s price further.