Chronos is in the red following a community proposal to cancel the massive token burns that burned 70 billion tokens in 2021.
Finally, on Sunday checks, Cronos (CRO) (formerly known as Crypto.com Coin) is red. See below.
The recession is because third-party data indicates that the amount of tokens processed by distributed exchange protocols like VVS Finance has jumped.
According to Defi llama, The weekly volume surged 140% to $123.2 million, bringing the cumulative total to $13 billion. Most of this volume comes from Cronos' largest DEX network, VVS Finance, which has processed $92 million over the past seven days.
This growth explains why VVS tokens have jumped double digits over the past few days.
Second, there are indications that the Chronos community will reject the recently released proposal.
Their goal is to reissue 70 billion tokens. This will result in a total circulation token of 100 billion. These new tokens will be assigned to Cronos Strategic Reserves, which are eligible for the new five-year lockup.
Cronos aims to use these funds to grow their networks, including investing in CRO-backed ETFs.
However, users are blaming the move and note that more tokens will be added to the tokens in circulation, leading to more dilutions as more tokens will be added. It also means that developers can design more token issuances in the future.
Voting data shows that the outcome of the vote is approaching. 50.92% of voters supported the new proposal, and 48.56% declined it. Many things could change before the voting period ends on March 17th.
For the proposal to proceed, supporters must win with a sufficient quorum. The quorum is currently 23.50% compared to the 33.40% required.
Cronos pricing technology analysis
Daily charts show that CRO prices have bottomed at $0.0700 this month. This was a notable level in November and August last year.
The rebound occurred when two rows of the falling wedge pattern approached the confluence level. Additionally, the relative strength index and MACD indicator have been turned upwards.
So, if you go above the 50-day moving average by $0.1, you'll see an increase in Cronos price increases. Such a move will lead to more profits and will be a major resistance level at $0.1400, potentially the highest swing on April 30th.
