The Crypto.com Coin (CRO) has surged in price this week, but the analytics firm Santiment is warning that certain metrics indicate the red-hot crypto asset could be primed to cool off.
The crypto asset’s momentum developed after news broke that the iconic Staples Center in Los Angeles will be rebranded to Crypto.com Arena. Now, CRO, the cryptocurrency that powers the Crypto.com payment, trading and financial services platform is trading at $0.76, up more than 60% from where it was a week ago.
In a new analysis, Santiment notes that CRO has seen a spike in FOMO (fear of missing out) on social media – a potentially bearish indicator.
“The FOMO is real as seen from the massive spikes in social volume over this month as compared to the previous months. So much so that it was appearing more than once as one of the top words in our Social Trends ranking.
Historically, if a coin appears for several days in Social Trends, it’s highly likely that the local top is in.”
Santiment also examines the MVRV 7D metric, calculated by dividing CRO’s market value by its realized value.
The analytics firm notes that CRO is currently in the “danger zone” because short-term holders of the asset have seen their investments rise in value, which could convince them to take profits.
Santiment says CRO will likely cool off before its next price run.
“On-chain/social metrics are also indicating that quite a number of people FOMO’d in and will likely act as sell pressure if things go south.”
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/eliahinsomnia/Andy Chipus/Vladimir Sazonov
