Cronos (CRO) signals a breakout from the price pattern, opening up new growth potential.

Cronos (CRO) fell 3% at the time of writing on Wednesday, slightly correcting after a 10% bounce from the previous session. The short-term fluctuations are approaching the peak of the falling wedge pattern — a technical structure that often paves the way for upward breakouts.

In the derivatives market, data shows that the optimistic sentiment is gradually increasing as long positions (Long) continue to expand. Concurrently, the Total Value Locked (TVL) on the Cronos blockchain also recorded an upward trend, reflecting an increasing trust from on-chain users.

On-chain sentiment and derivatives regain strength

The demand for Cronos is heating up among retail investors, as many traders bet on the possibility of CRO entering a strong uptrend soon. According to data from CoinGlass, the open contract (OI) for CRO futures has increased by 2.39% in the past 24 hours, reaching 23.51 million USD. This development indicates that Long positions are being steadily accumulated, reflecting the expectation of an imminent breakout.

At the same time, the funding rate according to OI remains at 0.0045% — a signal indicating that the market is willing to pay fees to maintain Long positions. This is a cost established to balance the difference between spot prices and perpetual contract prices under leveraged conditions.

Derivatives data of Cronos | Source: CoinGlassNot only scoring points in the derivatives trading segment, the on-chain activities of Cronos are also showing improvement. Data from DeFiLlama indicates that the Total Value Locked (TVL) across the ecosystem has increased by 2.73%, reaching 407.31 million USD. The strong influx of capital into Cronos protocols demonstrates the growing confidence of on-chain users. At the same time, the market capitalization of stablecoins remains above 183 million USD — an impressive increase compared to just 18.39 million USD on January 1st — reflecting the abundant liquidity supporting the ecosystem.

Cronos DeFi Data | Source: DeFiLlama## Cronos reaches a decisive threshold in the falling wedge pattern

Cronos is currently approaching the peak of the falling wedge pattern — a price structure formed when selling pressure weakens, causing the range of movement to narrow between two descending trendlines on the daily chart. In technical analysis, the falling wedge pattern is often a signal that prices may bounce back when bears gradually lose their advantage.

Reinforcing the breakout scenario, the MACD indicator has reversed direction and is gradually approaching the signal line, indicating the possibility of a bullish crossover. If the crossover is confirmed, the MACD will give a buy signal due to the recovering upward momentum.

At the same time, the RSI indicator at 36 has bounced back from the oversold zone, indicating that buying pressure is returning to the market.

CRO/USDT daily chart | Source: TradingViewHowever, the bears have not necessarily retreated. The 50-day EMA just crossed below the 200-day EMA on Sunday, forming a “Death cross” — a sign that the bearish trend in the falling wedge pattern is gaining strength. If the negative trend continues and the 100-day EMA also crosses below the 200-day EMA, the market will receive additional sell signals, increasing the risk of a breakdown of the falling wedge structure.

In the event that the pattern is invalidated, CRO will have to break through the support area around 0.09437 USD. At that point, the downward momentum may extend to the bottom of 0.06721 USD set on October 10.

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