Cryptocurrency analytics firm Santiment has warned that certain metrics suggest Crypto.-com coin ($CRO) may be overbought after surging over 1,440% year-to-date, partly thanks to the launch of a new Ethereum Virtual Machine (EVM) compatible blockchain and to an iconic deal.
The price of $CRO, the native token of the Crypto..com chain that was created to “build a network of cryptocurrency projects, and develop merchants’ ability to accept crypto as a form of payment,” has exploded this year after Crypto.com announced that one of the most iconic sports arenas in America, Staples Center, would be renamed to “Crypto.com Arena” as a result of a new sponsorship deal estimated to be worth around $700 million.
The firm wrote that the FOMO is “real as seen from the massive spikes in social volume over this month as compared to the previous months.” The cryptocurrency topped its “Social Trends” ranking more than once, which historically Santiment says means it’s “highly likely that the local top is in.”
The firm also looked at $CRO’s MVRV 7-day metric, which is calculated by diving its market value by its realized value. It found the token is currently in a “danger zone” because short-term holders who have recently invested may be looking to take profits.
📈 $CRO has seen a major breakout this weekend, as higher highs were made on strong trade volume support. The $700 million purchase of the naming rights to the home of the #Lakers may have put #Cryptocom on the mainstream map. Read our metric analysis! https://t.co/Tl8birXDeI pic.twitter.com/gNIbgvWuR5
— Santiment (@santimentfeed) November 21, 2021
According to the firm, the price of $CRO will likely drop before it starts surging again in the future as social and on-chain metrics show “quite a number of people FOMO’d in and will likely act as sell pressure if things go south.”