Canton Network experienced a significant 36% rally in the past 24 hours, accompanied by a surge of 307% in daily trading volume. This impressive rally showcased strong market confidence, even though it occurred over a weekend.
The catalyst for this rally was the announcement of key partnerships by Canton Network. While last week’s news highlighted a partnership with the RedStone [RED] oracle, this time it was the Depository Trust & Clearing Corporation (DTCC) that made headlines. The DTCC received a non-action letter from the U.S. Securities and Exchange Commission, paving the way for a tokenized treasury infrastructure on the Canton Network.
As of the 18th of December, Canton [CC] has surged by 54.3%, marking a bullish trend reversal. The price action has successfully flipped the $0.079-$0.082 resistance zone into support, indicating a positive market structure shift.
Traders are now keeping a close watch on the market, looking for signals that confirm the ongoing bullish trend.
Swing traders show optimism towards CC after recent price movements
Source: CC/USDT on TradingView
On the 19th of December, a bullish shift was observed in the 12-hour structure, with the breach of the $0.079 swing high and the $0.082 local resistance level. The On-Balance Volume (OBV) has been steadily increasing over the past few days, reflecting strong demand and high trading volume.
Source: CC/USDT on TradingView
Recent trading hours have shown a bearish divergence between momentum and price, suggesting a potential minor price correction. The $0.01 support level is expected to be tested soon.
The unlikely bearish scenario
Despite the bearish divergence and the weekend rally, the probability of a bearish breakdown remains low. In such a scenario, CC may retrace its gains since Friday as investors react to the news.
Traders advised to maintain a bullish outlook on CC
A retest of the $0.01 support level could present a buying opportunity for short-term traders. A drop below $0.095 would indicate weakening bullish sentiment and invalidate the bullish scenario. The overall market structure and rising volume suggest a positive trend shift, especially with strong performance from Bitcoin [BTC] expected on Monday.
Traders should remain adaptable to market developments, as the current setup favors a bullish outcome with clear validation points.
Final Thoughts
- The regulatory approval for DTCC to tokenize assets on the Canton Network has been a driving force behind the recent rally.
- Market sentiment remains bullish, fueled by this significant development.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or any other form of advice.