Down around 42.5% from its all-time high, Crypto.com Coin (CCC:CRO-USD) looks due for a possible rebound.

The token is backed by the crypto financial services firm of the same name. Unfortunately, I wouldn’t count on one playing out in the short term.

Especially when the crypto market, like the stock market, seems to have entered “risk-off” mode, ahead of the U.S. Federal Reserve’s tapering and rate-hike plans.

As rising rates cause investors to cycle out of speculative assets, cryptocurrencies appear to be at risk of taking another plunge. Yet is this a certainty? Not so fast. I’m not saying the crypto market at-large will have another banner year.

At the same time, a severe price decline may not be in store, either. Instead, the crypto market could stabilize. If this happens, specific names may have a shot of delivering outsized returns, thanks to factors that are not market-related.

If there isn’t overarching downward pressure placed on digital assets, CRO’s main catalysts could enable it to re-hit its all-time high. Perhaps, even hit new highs.

That said, as is the case with any crypto, tread carefully. While the situation may not be as dire as it seems, a worst-case scenario could still play out.

Crypto.com Coin and Changing Market Conditions

Over the past few weeks, the crypto market has been under pressure. Largely, as investors take a more “risk-off” approach as the result of an increasingly hawkish U.S. Federal Reserve.

Expectations are also high that digital assets will experience more trouble in the coming year. Per a survey of money managers, crypto came in as the “top contender” for a correction in 2022.

As is the case with other cryptocurrencies, this change in market conditions will likely counter any coin/token-specific catalysts. In short, you can forget about CRO holding steady, much less making a comeback.

However, it’s not guaranteed that a hawkish Fed means a full-on meltdown for the cryptocurrency market.

For one, it’s possible that this factor is already priced into established cryptos like Bitcoin (CCC:BTC-USD). The actual raising of interest rates over the next twelve months may not result in a further decline for BTC, Ethereum (CCC:ETH-USD), as well as other names.

Again, I wouldn’t take that to mean that 2022 will bring a crypto bull market on par with the one experienced in 2021. Coins like BTC, ETH, and others could see more modest returns over the next twelve months.

In the absence of a bear market, individual coins and tokens may be able to make outsized moves, based upon their own catalysts. In CRO-USD’s case, that may mean a rebound, depending on the success of its promotional efforts.

Rising Awareness Could Still Help It Bounce Back

Earlier this month, I argued that rising awareness, plus its “get rich appeal,” were two things that could help Crypto.com Coin continue climbing to higher prices.

I’ll admit that its “get rich appeal” is debatable. Up nearly ten-fold year-to-date, now with a $14.1 billion market capitalization, it may be hard for it to see another 1,000% surge.

Still, it may still have room to run thanks to increased usage, driven by its recent marketing blitz. Yes, you may think that the rise in publicity from it paying $700 million for the naming rights to L.A.’s Staples Center, and through its global ad campaign featuring Matt Damon, is already priced-in.

After all, CRO has already seen a rapid rocketing in price. During November, it went from around 21 cents to as much as 97 cents (its all-time high).

However, even as speculators got too excited about Crypto.com, bidding up before it really starts to become as well-known as Coinbase (NASDAQ:COIN), that doesn’t mean another big bolt higher can’t happen.

This crypto may not in any way represent ownership in the company backing it, but its utility goes beyond just being a trading vehicle.

The platform, which besides providing the ability to buy/sell crypto, also issues crypto-backed credit cards, may give you generous cashback offers. As its heavy advertising helps to drive users, more will decide to get into CRO staking. In turn, boosting its token price.

The Verdict on CRO

At around 62 cents today after a big price decline in the past month, CRO may look like a falling knife you don’t want to catch. Especially as it seems that a change in market conditions may mean crypto moves even lower next year.

Nevertheless, if the crypto market stabilizes in 2022? Crypto.com Coin may have a path back to higher prices.

InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

 Read More: How to Avoid Popular Cryptocurrency Scams

On the date of publication, Thomas Niel held long positions in Bitcoin and Ethereum. He did not have (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.