Canton Network's CC Token (a Layer 1 centralized RWAs) has surged 84% in less than three weeks, but the short-term structure appears to risk a deeper correction before creating a safer buying opportunity.
Amidst the uncertainty of the crypto market, the network is seeing increased usage and sustained buying pressure. However, concentrated Longing order liquidation zones below the price could drag the CC down to lower levels before recovering.
- CC surged from $0.068 to $0.126 in less than three weeks, attracting the attention of traders.
- The long-term structure remains bullish, with notable support zones at $0.122 and $0.110.
- The bearish pattern on the 1-hour timeframe and the cluster of Longing liquidations below the price suggest a potential correction to around $0.12–$0.105 before a rebound.
Canton Network attracts investment thanks to increased on-chain activity.
Canton Network stands out as its CC Token surges 84% and the network records increased user activity, creating a foundation for expectations of real demand despite market volatility.
CC surged from $0.068 to $0.126 in less than three weeks, reflecting increased interest from traders and investors. The network also highlighted increased usage, generally XEM as a positive sign as on-chain demand and “real” usage levels can support long-term valuation.
At the time mentioned in the original text, CC retested the $0.122 region as a support level. The central question is whether this is a buy opportunity or if the price could correct further before forming a short-term Dip .
The long-term structure of CC remains bullish.
On the 1-day timeframe, the trend and price structure of CC remain bullish, with the OBV rising for three weeks indicating stable buying pressure.
The 1-day chart shows that buyers are still in control of the trend. However, volume is not as high as it was in November when the Token was first launched, as evidenced by the OBV indicator looking less explosive.
On the positive side, OBV has continued its upward trend for the past three weeks, implying consistent buying pressure. The volume drop is noteworthy, but, as per the original analysis, it's not enough to reverse the uptrend on the daily timeframe.
The levels of $0.122 and $0.110 are cited as key support. These had previously served as resistance earlier in the month, so a retest of either of these areas is often closely watched by bulls for signals of trend continuation.
The potential for a breakout requires additional demand over the next 24–48 hours.
On the 1-hour timeframe, OBV is increasing while the price remains above $0.124, but current evidence suggests that a bullish breakout scenario is not yet highly probable.
Hourly data shows OBV inching upwards as CC attempts to hold above the $0.124 support zone. This opens up the possibility of a rebound if demand increases significantly in the next 24–48 hours.
However, the original text assessed this scenario as "unlikely" based on available signs. This means traders need to wait for confirmation of strong buying pressure (e.g., price breaking through the nearest resistance zone with appropriate momentum and volume) instead of assuming a breakout based solely on holding support.
Action strategy: Wait for a deep correction before buying.
The descending triangle pattern on the 1-hour timeframe and the cluster of Longing liquidations below the price increase the likelihood of CC falling to $0.12–$0.105 before recovering.
A descending triangle on the 1-hour timeframe is often a bearish continuation pattern. If the center of gravity breaks below $0.124, it would signal a deeper correction.
The original text emphasizes the concentration of Longing order liquidation in the $0.12–$0.105 range. When there is a dense cluster of liquidation below that price, the market sometimes tends to sweep down to that area before reversing, making this region a watchful point for a buy-on-the-dip strategy.
The "wait for a deep dip before buying" strategy will be invalidated if the price breaks out above the local resistance zone of $0.132–$0.133. At that point, traders usually need to reassess the situation because upward momentum may have returned.
Frequently Asked Questions
By how much did CC increase during the period in question?
CC surged 84% in less than three weeks, from $0.068 to $0.126.
What are the key support areas for CC?
Two key support zones were identified as $0.122 and $0.110, both of which had previously Vai as resistance.
Why are traders advised to wait for a deep correction?
Because the 1-hour timeframe shows a descending triangle pattern and there is a cluster of Longing order liquidations concentrated in the $0.12–$0.105 range, increasing the likelihood of the price falling to this area before bouncing back.
When is a deep adjustment scenario rendered ineffective?
When the price breaks above the local resistance zone of $0.132–$0.133, the scenario of waiting for a further drop before buying will no longer be relevant according to the original content.
