Journalist
Posted:
Canton saw a 288% surge in daily trading volume, according to CoinMarketCap stats.
The daily trading volume was $21.97 million at the time of writing, even after this surge, which is relatively low for a $2.64 billion market cap token.
The trading volume surge was accompanied by a 5.2% rally in the late hours of the 14th of December, but Canton [CC] was unable to climb past the $0.077 local resistance.
The reason behind this rally was likely the partnership announcement with modular blockchain oracle RedStone [RED].
On the 10th of December, Canton announced that its RWA ecosystem is powered by RedStone’s customizable data feed.
Blockdaemon explained that Canton’s private execution, provable atomic interoperability, and independent sovereignty made Canton well-suited for tokenized funds.
A day earlier, Digital Asset had announced the completion of a second set of transactions on the Canton Network. The milestone demonstrated more stablecoin liquidity on the network, among other things.
Should investors look to invest in CC?
The downtrend is still unbroken
Source: CC/USDT on TradingView
On the 12-hour chart, the swing highs that need to be overcome to establish a bullish structure were at $0.0797 and $0.0824.
At the time of writing, the structure was bearish due to the lower low made in the first week of December, at $0.0587.
Even though the $0.0723 support looked to have been reclaimed, traders have reason to maintain their bearish bias.
The A/D indicator has been flat, showing no accumulation, and the momentum was bearish too, as shown by the Awesome Oscillator.
Assessing a bullish CC short-term move
Source: CC/USDT on TradingView
The lower timeframes were not more encouraging either.
After the quick rally on the 8th of December, a couple of days before the RedStone announcement, the price action has been stagnant. The A/D has been in decline on the 1-hour timeframe.
Here’s what can change the bearish outlook
Until the $0.076-$0.079 region is flipped to support, traders can maintain a bearish bias. A bounce to this supply zone could offer a selling opportunity.
On the other hand, if $0.079 is retested as support in the coming days, it would be indicative of a rally toward $0.1 and higher.
Final Thoughts
- The Canton Network announced a partnership with oracle RedStone to bridge the gap between traditional asset management and onchain liquidity tools.
- On the price front, the CC token retains a bearish outlook despite the recent gains.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion