HomeCryptoDecoding Crypto.com’s new Brazilian license and CRO’s growth prospects
Decoding Crypto.com’s new Brazilian license and CRO’s growth prospects
December 17, 2022
Crypto.com has secured a new payment institution permit from Brazil.
Holders of its native token, CRO, have seen the biggest losses.
Crypto.com has come close to strengthening its position in Latin America after receiving a new license in Brazil. With finished 10 millionBrazilians who own cryptocurrencies, the license could be a game-changer for both users and the exchange.
Read Chrono [CRO] Price forecast 2022-23
It would be interesting to see how the recent development affects Crypto.com’s native token, Cronos [CRO].
New license, new profits?
On December 15, Crypto.com announced that you have received a payment institution license from the Brazilian Central Bank. This meant that Brazil could expect more regulated fiat wallets from the exchange, allowing users to make payments with both fiat and digital currencies.
Ol á 🇧🇷
We are excited to announce our latest milestone in strengthening regulatory compliance, this time in Brazilhttps://t.co/vCNztATkNg received a Payment Institution License from the Central Bank of Brazil
This is a good sign from the point of view of cryptocurrency regulation and exchange expansion. However, the development has had less of an impact for investors, especially CRO holders.
According to Santiment data, CRO has seen a decline in network growth as of this writing. Given the positive correlation between network growth and CRO share price, another decline could drive the token price down.
Additionally, overall weighted sentiment slipped more into negative territory, showing that the new development had no significant and immediate impact on investors.
The deal between Crypto.com and Brazil is about CRO
Collectively, these metrics weighed on the CRO price and exposed investors to losses as the seven-day MVRV (market value/realized value) ratio declined further.
The daily chart of the CRO was also colored red but showed the possibility of a reversal if the price followed its historical trend.
Source: CROUSDT on TradingView
Since mid-November, CRO prices have reversed whenever the Relative Strength Index (RSI) has reached the entry level of oversold territory. At the time of press, the RSI was moving towards the oversold area and could reverse if it followed the previous trend.
Such a reversal and increased buying pressure could push the CRO higher in the coming days and turn its $0.0635 resistance into support.
However, the On Balance Volume (OBV) indicator has declined, so the price reversal could be delayed if the buying pressure eases in the coming days. In other words, CRO prices could only increase if the trading volume increases.
Therefore, the new Brazilian license could be a significant milestone for the exchange and the vibrant cryptocurrency community in Brazil. However, CRO holders don’t share the same enthusiasm, at least not in the near term, as they are exposed to further losses.