The Crypto.com Coin (CRO) price retreated slightly during the overnight session on Thursday as investors reacted to the latest American inflation data. The coin is trading at $0.50, which is about 8% below the highest level this week. It has risen by 53% from its lowest level this week, bringing its total market capitalization to $12.7 billion.
US inflation data
The main catalyst for the Crypto.com Coin price was the latest American inflation data. According to the Bureau of Labor Statistics (BLS), the headline consumer inflation jumped from 7.0% in December to 7.5% in January. Excluding the volatile food and energy prices, inflation rose to 6.0%.
In total, official numbers show that the country’s inflation has jumped to the highest level in more than 40 years. The performance was attributed to the surging oil prices and the supply chain challenges. The price of West Texas Intermediate (WTI) has jumped from minus $38 in March 2020 to over $90.
At the same time, the supply chain challenges have continued, pushing more companies to hike prices. This week, companies like Coca-Cola, Pepsi, Sherwin Williams, and Chipotle Mexican Grill (CMG) announced that they had risen prices.
Sadly, the situation could get worse in the near term because of the ongoing trucker protest in Canada. Companies like General Motors and Ford announced that they had reduced their output.
The CRO price declined because the rising inflation means that the Federal Reserve will likely accelerate its tightening. The bank has already hinted that it will hike rates three times this year starting from March,
Therefore, as inflation gets out of hand, there is a possibility that the bank will deliver more rate hikes than expected.
Cryptocurrency prices are highly sensitive to a tightening Fed. Indeed, most of them have lost over 40% of their value since the bank started tapering its asset purchase in November.
Super Bowl weekend
The next catalyst for the Crypto.com Coin price will be the upcoming Super Bowl event this weekend. Media reports suggest that Crypto.com will be one of the several companies in the industry to advertise. Others expected to do so are FTX, Coinbase, and BitBuy, a Canadian company.
Super Bowl is the most important sporting event in the US with more than 91.8 viewers. Therefore, analysts expect that these ads will lead to more visibility of Crypto.com and the products it offers.
The company has been in the headlines in the past few months. For example, it is a leading sponsor of Formula 1, the most prestigious racing event. This week, it announced that it will be the title sponsor of this year’s Miami Formula 1 event.
It has also sponsored UFC and even bought rights to the former Staples Center. In Australia, it announced a major partnership with Adelaide Crows and the Australian Football League (AFL). The company is also implementing a $200 million ad blitz with celebrities like Matt Damon and Ronda Rousey.
Crypto.com coin price prediction
The daily chart shows that the CRO price has done well in the past few weeks. It has moved slightly below the 50% Fibonacci retracement level. It has also moved slightly above the upper side of the descending channel that is shown in red. The Relative Strength Index (RSI) has also been in an upward trend.
Therefore, there is a likelihood that the Crypto.com Coin price will keep rising during the weekend. If that happens, the next key level to watch will be at $0.70.