In recent months, many companies across the crypto and fintech space have established their own treasury arms to better manage digital assets, hedge market risks, and unlock new growth opportunities. Going by the trend, three popular companies struck a deal to launch a CRO treasury, and with this announcement, the price of Cronos broke above its 8-month resistance and reached a new high.
Under a strategic partnership, Yorkville Acquisition Corp. (YORK), Trump Media and Technology Group Corp. (Trump Media), and Crypto.com announced yesterday that the trio has reached an agreement for a business combination to establish Trump Media Group CRO Strategy, Inc., a digital asset treasury company focused on the acquisition of the native cryptocurrency token of the Cronos ecosystem–CRO.
Trump Media Group CRO Strategy, the first largest CRO treasury
The press release stated, “Expected funding for the digital asset treasury will consist of $1 billion in CRO (6,313,000,212 CRO, representing ~19% of the total CRO market cap as of announcement), $200 million in cash and $220 million cash-in mandatory exercise warrants, with an additional $5 billion equity line of credit from an affiliate of Yorkville, YA II PN, Ltd.”
Trump Media Group CRO Strategy, Inc., will be the first and largest publicly traded CRO treasury company, “as well as what we believe to be the largest digital asset treasury company to market cap ratio in history.”
Cronos (CRO) price broke above the $0.21 resistance level
With the announcement of launching a CRO treasury, the price of the Cronos token shot up, breaking above its 8-month resistance of $0.21. During the past 8 months, the token barely rose above $0.17, but with the announcement, it broke all barriers. Let’s take a look at what happened on the technical side of CRO.
Fluctuating inside the symmetrical triangle, CRO’s range of motion was restricted between $0.14 and $0.16. Inside a symmetrical pattern, price moves between two converging trendlines, creating lower highs and higher lows. It signals market indecision, with a breakout likely once the pattern completes.
Cronos will fall to $0.20 once the excitement about the partnership dies
CRO broke out from the pattern after rebounding off the 50-day moving average (yellow) line. The token appreciated from $0.152 to $0.219, establishing an increment of 40%, within a day and a half.
The market is currently overbought as the RSI indicator has crept high above the 70 mark, which is the borderline for the overbought region. Since too many hands are still buying the news of the announcement, the market is still excited. However, the excitement will die, and the Cronos price will fall to just under $0.20.
