Cronos (CRO), the native token of the Cronos blockchain, is facing a significant downturn ahead of its much-anticipated Smarturn upgrade. Despite the technological improvements promised by the upgrade, investor sentiment appears to have soured. Over the past 30 days, CRO has fallen by 22%, wiping out much of the gains the asset saw during August’s bullish run.
At the time of writing, CRO trades near $0.15, reflecting a notable pullback from recent highs. Market analysts are pointing to a mix of technical weakness and waning investor confidence as the primary drivers of this correction.
Technical Indicators Point to Weak Momentum
A look at the 4-hour chart shows CRO consolidating within a symmetrical triangle, a pattern that usually signals indecision among traders. However, the underlying indicators suggest that bears currently have the upper hand.
The Moving Average Convergence Divergence (MACD) has formed a bearish crossover, with the MACD line sliding below the signal line. This movement indicates that selling pressure is increasing, potentially paving the way for another downward move.
Adding to the concern, CRO has slipped below the 20-period Exponential Moving Average (EMA). This decline below a key support level often signals that sellers are in control. If the token fails to recover above the 20 EMA soon, the next potential support lies around $0.13, where bulls might attempt to halt further losses.
Smarturn Upgrade Brings Optimism, But Not Enough Momentum
Today marks the implementation of the Cronos Mainnet Smarturn upgrade, a development that was expected to inject fresh enthusiasm into the project. According to the Cronos team, the upgrade, scheduled to occur at block height 38,432,212 around 7 a.m. GMT, introduces several core improvements to the network.
These enhancements include:
- Smart accounts to improve user experience and security,
- New Ethereum Virtual Machine (EVM) opcodes,
- IBC (Inter-Blockchain Communication) interoperability,
- Ethereum client updates, and
- Performance optimisations for smoother operations.
While the upgrade marks a technical milestone, the market’s response so far has been lukewarm. The network may experience up to one hour of downtime during the transition, but traders appear more concerned with price action than with long-term protocol improvements.
Analysts caution that in the short term, fundamental upgrades rarely offset bearish technical setups, particularly when overall sentiment remains cautious across the altcoin market.
Descending Triangle Formation Signals Further Risks
From a broader perspective, CRO’s daily chart paints a concerning picture. The asset is currently trapped within a descending triangle, a bearish continuation pattern that often precedes further declines. Support around $0.14 has so far held, but the structure suggests mounting downside risk if the level is breached.
Another troubling indicator is the Chaikin Money Flow (CMF), which has dropped below the zero line, confirming weak capital inflows. This indicates that buyers are not accumulating CRO at current levels, a sign that demand may be drying up.
If selling pressure continues, the token could test $0.10 in the near term. A decisive breakdown below that support would likely trigger a deeper correction, potentially revisiting levels last seen months ago.
Can CRO Recover After the Upgrade?
Despite the prevailing bearishness, there is still a narrow window for recovery. If Cronos manages to sustain price action above the midpoint of the descending triangle, and bullish volume returns, a breakout above $0.16 could invalidate the negative outlook. In that scenario, CRO could aim for an upside target near $0.21, signalling the start of a recovery phase.
However, until the price convincingly breaks above key resistance levels, the bears remain in control. The market seems to be adopting a “wait and see” approach, assessing whether the Smarturn upgrade will translate into tangible ecosystem growth or simply become another short-term technical event.
For now, Cronos investors may need to brace for continued volatility as the market digests both the network upgrade and broader market headwinds.
Cronos’ 22% monthly decline ahead of its Smarturn upgrade underscores the tension between technological progress and market sentiment. While the upgrade enhances the network’s functionality, it has so far failed to inspire buying interest, unless CRO can reclaim critical resistance at $0.16 and attract stronger inflows, the token risks slipping toward $0.13 or even $0.10 in the days ahead.
