Cronos’ price rose on March 17 after the Strategic Reserves vote passed by a wide margin and following the launch of a new proposal to burn 50 million coins.
Cronos (CRO), formerly known as Crypto.com Coin, climbed to a high of $0.090, up more than 26% from its lowest level this month.
The closely-watched vote to create the Cronos Strategic Reserves passed by a wide margin. This means the network will create 70 billion new CRO tokens, effectively reversing the burn event that took place in 2021.
The new tokens will be unlocked monthly over the next 10 years, which could lead to dilution. However, developers noted creating these reserves will help boost the ecosystem and attract over 1 billion users over time. One of the key initiatives includes creating exchange-traded funds backed by the CRO token.
The challenge for most CRO holders is that creating 70 billion new tokens will increase supply, which could weigh on the price.
Cronos price rose after the developers proposed burning 50 million coins from the 70 million CRO in the community pool.
This will be the fourth token burn in recent months. At current prices, these tokens are valued at approximately $4 million. The vote, which is expected to pass easily, will run through March 17.
Cronos price analysis
The daily chart shows that CRO’s price has moved sideways over the past few days. It remains below the 50-day and 100-day Exponential Moving Averages.
Cronos has formed a symmetrical triangle pattern whose two lines are nearing convergence — a sign that a significant move may be on the horizon.
The Relative Strength Index and the Moving Average Convergence and Divergence, or MACD, have formed a bullish divergence pattern. This happens when oscillators are in an uptrend while the asset is in a downtrend.
Cronos has also formed a triple-bottom pattern at $0.0710. It has failed to move below this price three times since 2024.
Therefore, the coin may soon bounce back if it holds above the support at $0.0710. If this happens, the next target will be the 100-day moving average at $0.1080, about 30% above the current level. A drop below the triple-bottom pattern at $0.0710 would invalidate the bullish outlook.