Canton Network's Price Surge: What to Expect Next

Canton Network has recently drawn considerable interest from traders and investors. The utility token for this Layer 1 blockchain focused on Real-World Assets (RWAs) has experienced an impressive 84% increase in value over the past three weeks, rising from $0.068 to $0.126. This surge can be attributed to the network's growing user engagement, which is a positive sign amidst the overall uncertainty in the market.

Key Takeaways

Canton Network's token, CC, has surged 84% recently, reaching $0.126.
Increased user activity is contributing to the token's attractiveness.
The price is currently holding above key support levels of $0.122 and $0.110.
A deeper price retracement below $0.124 may occur, suggesting a wait-and-see approach for traders.

Canton Network [CC]

Analysis of CC's Long-Term Performance

CC 1-day Chart

As seen in the daily chart, the overall trend for the CC token remains bullish. Although trading volumes have decreased compared to November, when the token was first introduced, the On-Balance Volume (OBV) has shown a steady increase over the past three weeks. This indicates consistent buying pressure, which supports the bullish sentiment in the market.

Moreover, the levels at $0.122 and $0.110 are critical points of support, previously acting as resistance earlier this month. A retest of either of these levels may provide buying opportunities for investors.

Potential for a Bullish Breakout

CC 1-hour Chart

On the hourly chart, the OBV continues to rise, indicating that CC prices are holding solidly above the key support level of $0.124. This trend suggests a possibility for a bullish breakout depending on demand over the forthcoming 24 to 48 hours; however, the current data implies that this scenario may be less likely.

Traders' Strategy: Await a Potential Price Dip

CC Liquidation Heatmap

The descending triangle pattern visible on the hourly chart typically signals a bearish continuation. If the price dips below the $0.124 support level, it would likely confirm a deeper retracement. Current data shows a concentration of long liquidations in the $0.12 to $0.105 range, indicating that prices are likely to head towards this area before a potential recovery. Therefore, traders might find it prudent to wait for a deeper dip before making purchases.

Conversely, if the token manages to break through the local resistance zone of $0.132 to $0.133, it would invalidate the anticipated retracement.

Conclusion

Disclaimer: The insights shared in this article reflect the author's opinion and should not be construed as financial, investment, or trading advice.