The cryptocurrency trading platform announced Tuesday evening that it had paid $ 700 million to Anschutz Entertainment Group (AEG) to rename the Staples Center to Crypto.com over the next 20 years. In doing so, it has forged ties to the local downtown sports franchises, including the Los Angeles Lakers, the NBA’s Clippers, and the Kings franchises of the Countrywide Hockey League.
The deal will increase public awareness of Crypto.com, and this has prompted traders to raise their bids on CRO, a payment token that mediates through various assets in the ecosystem, Crypto.com Thai.
CRO faces a temporary sell-off risk at its peak
CRO rose nearly 27.50% the day after the marketing trade of Crypto.com and another 20% the next day to a record high of $ 6,627, bringing its market cap to nearly $ 13.15 billion.
The bullish breakout of the Crypto.com token also caused it to close above the downward resistance, forming an upward channel pattern. The bears then returned to confirm the channel’s upper trendline as resistance, but the bulls overwhelmed their attempt causing the price to rebound on the upside.
So CRO set out to investigate pricing, underscoring dealers’ predictions that his name would drive adoption in a popular sports arena and that price would go hand in hand.
However, the risk of a sell-off remains as its relative strength index enters the overbought territory.
As a result, CRO is showing signs of correction after its high on Thursday, suggesting that many traders have decided to hedge their profits in anticipation that the CRO rally won’t last much longer.
Based on CRO’s historical price action, targeting the next lower trend toward the 20-day exponential moving average (blue wave 20-day EMA) – near $ 0.37 – is the target, the next decline. The previous wave acted as an accumulation zone for the CRO bulls after the price drop.
Crypto meets sport
Crypto.com was founded in 2016 and is currently the ninth largest spot cryptocurrency exchange in the world. In the past 24 hours, the volume was $ 1.82 billion, compared to Binance – the leading crypto exchange – $ 31 billion.
Related: Angelenos Pushes Back New Crypto.com Arena: “It Will Always Be a Staples Center”
Cypto.com also has current sponsorship deals with the Top Combating Championship (UFC), Paris Saint-Germain Football Club (PSG) and the Philadelphia 76ers Basketball Club. These transactions are in line with similar sponsorships between crypto companies and sports clubs, including BitMex and Binance’s partnership with Italian Serie A clubs AC. Milan and Lazio.
Meanwhile, FTX, whose FTT native token has risen more than 750% this year, has become the official crypto exchange brand for Main League Baseball, following an announcement earlier this year. The company also acquired the naming rights to the FTX Arena from Miami Heat.