- Cronos price has pulled back in the past few days as investors wait for the Fed decision.
- Ferro, a DeFi platform in its ecosystem has seen its TVL surge to over $123 million.
Cronos price has been under pressure in the past few days as investors wait for the upcoming Federal Reserve interest rate decision. CRO is trading at $0.1210, which is about 14% below the highest level this month. It has a market cap of over $3 billion, making it the 24th biggest coin in the world.
Cronos ecosystem challenges
Cronos is a leading smart contract platform that was developed by Crypto.com, one of the biggest companies in the blockchain industry.
It is a Ethereum Virtual Machine (EVM) compatible blockchain platform that lets developers build decentralized applications (dApps) in all industries like decentralized finance (DeF), NFTs, and gaming. Unlike other popular platforms, Cronos uses a consensus protocol known as Proof-of-Authority (PoA).
Cronos has been used to build some of the best-known applications. For example, some of its popular DeFi applications are VVS Finance, Tectonic, Ferro, MM Finance, and Single Finance among others.
It has also been used to build NFT products like Crosmonauts, Cronos Chimp Club, Crocus NFT, and Agora among others. Its bridges include Cronos Bridge, Multichain, and NerveNetwork among others.
After staging a strong recovery last week, Cronos price has pulled back in the past few days as investors wait for the upcoming interest rate decision by the Federal Reserve. Analysts expect that the Fed will hike interest rates by a whopping 0.75% in its bid to lower the rising inflation. Historically, risky assets like Cronos and Bitcoin tends to underperform in a period when the Fed is tightening.
Cronos has also declined because of the underperformance of its ecosystem. The TVL of its DeFi apps has dropped from an all-time high of over $4 billion to the current $1 billion. Recently, however, many projects in its ecosystem have seen large inflows. They include CyborgSwap, Ferro, and Argo Finance. Ferro’s TVL has jumped by 158% in the past 30 days to the current $123 million.
Cronos price forecast
The four-hour chart shows that the CRO price has been in a strong bearish trend in the past few days. A closer look reveals that it has formed an ascending channel that is shown in blue. The current price is slightly above the upper side of this channel.
It is also slightly below the 25-day moving average while the RSI has moved above the oversold level. Therefore, a drop below the lower side of the channel will signal that bears have prevailed and that the coin will likely drop to $0.10.
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