CRO price hits new high after Crypto.com wins Los Angeles' Staples Center naming rights
Crypto.com's native cryptocurrency CRO hit an all-time high of $0.593 on Nov. 18 after the company won the naming rights to Los Angeles's Staples Center.
The cryptocurrency trading platform announced Tuesday night that it had paid $700 million to the Anschutz Entertainment Group (AEG) to rename Staples Center to Crypto.com for the next twenty years. In doing so, it gained links with the downtown arena's native sports franchises, including NBA's Los Angeles Lakers, Clippers, and National Hockey League's Kings franchise.
The deal should boost Crypto.com's public awareness, and this prompted traders to raise their bids for CRO, an intermediary settlement token across various assets inside the Crypto.com ecosystem.
CRO faces interim selloff risks at peak
CRO surged by almost 27.50% a day after Crypto.com's marketing deal and by up to another 20% the next day to reach a record high of $0.627, putting its market cap near $13.15 billion.
The Crypto.com token's upside boom also had it close above its upward sloping resistance level, constituting a broad Ascending Channel pattern. Bears later returned to confirm the Channel's upper trendline as resistance but bulls overpowered their attempts, causing the price to rebound higher.
As a result, CRO entered price discovery, underscoring traders' anticipation that its name on a popular sporting arena would boost its adoption and prices in tandem.
However, selloff risks were there as its relative strength index entered overbought territory.
As a result, CRO showed signs of correction after peaking out on Thursday, suggesting that many traders decided to lock their profits in anticipation that the CRO price rally would not extend any further.
Based on the CRO's historical price actions, its next leg lower tends to eye the 20-day exponential moving average (20-day EMA; the green wave) — at near $0.37 — as its next downside target. The wave has previously acted as an accumulation zone for CRO bulls after price dips.
Crypto meets sports
Founded in 2016, Crypto.com currently ranks as the world's ninth-largest crypto spot exchange. In the previous 24 hours, Its volumes came out to be $1.82 billion, compared to Binance's — the top crypto exchange — $31 billion.
Related: Angelenos push back on new Crypto.com arena: 'It will always be the Staples Center'
Cypto.com also has existing sponsorship deals with Ultimate Fighting Championship (UFC), football club Paris Saint-Germain (PSG), and Philadelphia 76ers, a basketball club. The deals align with similar sponsorships between crypto companies and sports clubs, including BitMex and Binance's partnership with Italian Serie A clubs AC Milan and Lazio, respectively.
Meanwhile, FTX, whose native token FTT surged by more than 750% this year, became the official crypto exchange brand for Major League Baseball following an announcement this year. The company also bought the naming rights for Miami Heat's FTX Arena.
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