Decoding’s New Brazilian License and CRO Growth Prospects

  • has secured a new payment institution license from Brazil.
  • Holders of its original token, CRO, saw multiple losses. moved closer to strengthening its position in Latin America after receiving a new license in Brazil. With over 10 million Brazilians who own cryptocurrencies, the license could be a game-changer for both users and exchanges.

Read Cronos [CRO] Price forecast 2022-23

It would be interesting to see how recent developments affect’s native token, Cronos [CRO].

New license, new earnings?

On December 15, announced that it received a license for payment institutions from the Brazilian Central Bank. This meant that Brazil could expect more regulated fiat wallets from the exchange, allowing users to pay with fiat and digital currencies.

This is a good sign from the perspective of crypto regulation and exchange expansion. However, the development was less influential for investors, especially for CRO owners.

According to Santimento data, CRO has seen a decline in network growth at the time of writing. Given the positive correlation between network growth and CRO’s share price, another drop could push the token’s price lower.

Source: Sentiment

In addition, overall weighted sentiment slipped deeper into negative territory, indicating that the new development did not have a significant and immediate impact on investors. and Brazil deal affects CRO

Overall, these metrics weighed on CRO’s price and exposed investors to losses as the seven-day MVRV (market value to realized value) ratio continued to decline.

The daily CRO chart was also colored red, but showed the possibility of a reversal if the price follows its historical trend.

Source: CROUSDT on TradingView

Since mid-November, CRO prices have reversed whenever the relative strength index (RSI) reached the entry level of an oversold area. At press time, the RSI was moving towards oversold territory and could reverse if it follows the previous trend.

Such a reversal and increased buying pressure could pull the CRO higher in the coming days and turn its $0.0635 resistance into support.

However, the On Balance Volume (OBV) indicator has fallen, so the price reversal could be delayed if buying pressure eases over the next few days. In other words, CRO prices can only increase if trading volume increases.

Therefore, the new Brazilian license could be a significant milestone for the exchange and the vibrant crypto community in Brazil. However, CRO owners do not share the same enthusiasm, at least not in the short term, as they are exposed to additional losses.

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