Cronos price remained under pressure as data showed that a crucial vote to create strategic reserves will pass. The CRO token retreated to $0.08 on Sunday, down by over 65% from its highest level this year. So, what next for the token ahead of substantial dilution?
Cronos Community Votes for Dilution
CRO price remains in a deep bear market as signs show that a major proposal will pass. The developers proposed creating a Strategic Reserve a few weeks ago. To do that, they proposed creating 70 billion new tokens, undoing a big token burn that reduced tokens in circulation from 100 billion to 30 billion.
According to MintScan, the proposal has received over 4.6 billion CRO tokens in support and 1.22 billion on the opposing side. 20.22%, or 1.48 billion CRO tokens, abstained from the vote. This indicates that the required quorum has been met.
The developers justified the proposal by stating that the strategic reserve is necessary for the network to achieve its goal of being the biggest chain in the crypto industry. Their new vision is to become the key blockchain for AI agents.
Crypto.com has also announced a broad vision to bridge the gap between the crypto industry and traditional finance. One approach will be to create ETFs backed by the CRO token.
The developers noted that the new 70 billion tokens will be subject to a 5-year lock-up on top of the 5-year period since its issuance on Ethereum. This means that these tokens will unlock in the next ten years and will happen linearly every month. It also means that existing CRO holders will expect more dilution in the future.
The new vote came at a time when the Cronos ecosystem is not doing well as the total value locked (TVL) has dropped to $397 million, down from over $3 billion in 2022.
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Cronos Price Analysis
The weekly chart shows that the CRO price has retreated in the past few weeks. Precisely, it has dropped in the last seven consecutive weeks and is hovering at its lowest level since November 4.
Cronos price has stayed below the 50-week moving average, indicating that bears currently have control. Also, the Relative Strength Index (RSI) and the MACD indicators have all pointed downwards.
Therefore, the coin will likely drop to the next key support level at $0.05125, the lowest swing in 2022 and 2023. Further downside will be confirmed if the CRO price falls below that support level.
An alternative scenario is that the Cronos price rebounds and retests the key resistance level at $0.1800, its highest point in March last year.
READ MORE: Cronos Partners with Crypto com for Crypto-to-Debit Card Transfers
