Canton Network Reaches a Crossroads: Buyers Drive Up Prices, But Caution from CC Persists

Canton Network has recently experienced a significant price fluctuation, driven by a resurgence in buyer interest after a brief sell-off. As of now, the altcoin is making strides towards recovery, with notable increases in trading volume and open interest. However, caution remains as market dynamics continue to evolve.

Key Takeaways

Strong buying activity is evident, with a significant buy-sell delta indicating dominant demand.
Open Interest has increased by 11.87%, volume has soared by 87%, and long positions have slightly overtaken short ones.
Following its launch on exchanges two weeks ago, the price of Canton reached a peak of $0.21 before dropping to a low of $0.072.
Recently, support at $0.074 has held, allowing Canton to reach a local high of $0.087.
Currently, Canton is priced at $0.085, reflecting a 13.21% daily gain, with trading volume hitting $351 million and market cap rising to $3 billion.

Canton Buyers Make a Strong Return

As the price of Canton declined, many holders and investors reacted by selling off their assets, giving sellers control of the market. However, after four consecutive days of selling, buyers have emphatically returned, overtaking sellers in the last 24 hours.

During this active period, Canton Network generated $6.4 million in buy volume, compared to $4.5 million in sell volume as reported by Coinalyze. This surge in buying led to a positive buy-sell delta of 1.9 million, demonstrating robust accumulation in the market. Typically, such strong buying pressure can lead to upward price momentum.

Additionally, exchange activity supports this trend of accumulation. Data from CoinGlass shows that the altcoin has experienced a negative spot netflow for six straight days, which means more assets are exiting than entering. As of the latest update, netflow stood at -$8.99 million, indicating a significant drop and further suggesting that buyers have taken control.

Canton Network Buy-Sell Volume

Derivatives Market Reactions

After the Canton Network indicated signs of recovery, speculators quickly entered the market to capitalize on potential gains. CoinGlass reported an 11.87% increase in Open Interest, now at $18.06 million, and a volume surge of $87, reaching $571.16 million.

This dual increase in open interest and volume is a sign of heightened engagement and capital influx into the derivatives market. Traders are actively opening both long and short positions, with the Long/Short Ratio climbing to 1.004, suggesting a stronger inclination towards long positions. When long positions dominate, it indicates a bullish sentiment among market participants, anticipating further price increases.

CC Derivatives

Is This the Beginning of a Sustainable Uptrend?

The recent rebound of the Canton Network suggests a significant shift as buyers consolidate their positions both in the spot and derivatives markets. However, despite this renewed interest, the upward momentum remains fragile. Currently, the Relative Strength Index (RSI) is around 59, with its signal line at 72.

CC RSI & MACD

A higher signal line in relation to the RSI suggests that bullish momentum may be weakening, with both sellers and buyers actively participating. This is confirmed by a downward trend in the MACD, which has fallen to 0.018 following a bearish crossover.

As it stands, Canton Network finds itself at a crossroads. The ongoing battle between buyers and sellers determines its next move. Should buyers continue to accumulate, there’s potential for recovery, with a target price of $0.10 in sight. Conversely, if sellers regain the upper hand, the altcoin could retrace back to $0.074.