- Crypto.com secured a new payment institution license from Brazil.
- Holders of its original token, CRO, saw more losses.
Crypto.com moved closer to strengthening its position in Latin America after receiving a new license in Brazil. With over 10 million Brazilians who own cryptocurrencies, the license could be a game changer for both users and the exchange.
Read Cronos’ [CRO] Price prediction 2022-23
It would be interesting to see how recent developments affect Crypto.com’s native token, Cronos [CRO].
New license, new profit?
December 15, Crypto.com announced that it had 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 fiat and digital currencies.
We are excited to announce our latest milestone in strengthening regulatory compliance, this time in Brazilhttps://t.co/vCNztATkNg has received a payment institution license from the Central Bank of Brazil
License details: https://t.co/XgFCkZY0kR pic.twitter.com/8J15yGOJLU
— Crypto.com (@cryptocom) 15 December 2022
This is a good sign from the perspective of crypto regulation and the expansion of the exchange. However, the development had less significance for investors, especially holders of CROs.
According to Santiment’s data, CRO saw a slowdown in network growth at the time of writing. Given the positive correlation between network growth and CRO’s stock price, another decline could push the token’s price lower.
In addition, overall weighted sentiment slipped deeper into negative territory, showing that the new developments had no significant and immediate impact on investors.
Crypto.com and Brazil’s deal affects CRO
Collectively, these metrics weighed on the price of CRO and exposed investors to losses as the seven-day MVRV (market value to realized value) ratio fell further.
The daily chart of CRO was also colored red, but showed the possibility of a reversal if the price followed the historical trend.
Since mid-November, CRO prices have reversed each time the Relative Strength Index (RSI) reached the entry level of the oversold territory. At press time, the RSI was moving towards the oversold area and could reverse if it follows the previous trend.
Such a reversal and increased buying pressure could pull the CRO higher in the coming days and turn the $0.0635 resistance into support.
However, the On Balance Volume Indicator (OBV) fell, so the price reversal could be delayed if buying pressure eased over the next few days. In other words, CRO prices could only rise if trading volume increased.
Therefore, the new Brazilian license could be a significant milestone for the exchange and the vibrant crypto community in Brazil. However, CRO holders do not share the same enthusiasm, at least not in the short term, as they are exposed to further losses.