Canton Network was catching the attention of traders and investors. The utility token of the Layer 1 focused on RWAs has rallied 84% in under three weeks, from $0.068 to $0.126.
The network boasted of increasing user activity.
Network usage and genuine demand during a time of market-wide uncertainty are achievements that can drive further adoption and boost investor confidence.
At the time of writing, the token CC had retested the $0.122 level as support. Is this a buying opportunity, or will the retracement go deeper?
Longer-term CC structure remains bullish
The 1-day chart showed that the structure and trend were firmly bullish. Moreover, the token’s trading volume was not as high as it had been in November, when the token was newly launched.
It was reflected in the seemingly lackluster OBV.
CC’s OBV was climbing higher over the past three weeks, showing that buying pressure has been steady. The drop-off in trading volume was a slight concern, but not enough to upturn the bullish bias on the daily timeframe.
Additionally, the $0.122 and $0.110 levels were key support levels, which had been a resistance level earlier this month. A retest of either level would be interesting to Canton Network [CC] bulls.
The case for a bullish breakout
On the hourly timeframe, the OBV was rising higher as CC prices remained defiantly above the $0.124 support level. This suggested there was potential for a bullish breakout from here, if demand increases over the next 24-48 hours.
This scenario is unlikely, based on the evidence at hand.
Traders’ call to action – Wait for a deeper retracement
The descending triangle chart on the 1-hour chart is typically a bearish continuation pattern. A breakdown below the $0.124 support would confirm a deeper retracement.
The concentration of long liquidations from $0.12-$0.105 meant CC prices would likely fall toward this area before reversing the losses. Hence, traders can wait for a deeper price dip before buying.
A breakout past the $0.132-$0.133 local resistance zone would invalidate this idea.
Final Thoughts
- The Canton Network saw growing adoption onchain, which could drive demand and investor confidence in the long term.
- In the coming days, CC is expected to retrace toward $0.105 due to the long liquidation levels clustered beneath the price.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
