Canton Network rallied 36% in the previous 24 hours, with a daily trading volume surge of 307%. This rally reflected strong market conviction, even though the price action developed over a weekend.
The reason for the rally was the news that Canton Network secured notable partnerships. Last week, a partnership with the RedStone [RED] oracle made the news.
This time, it was the Depository Trust & Clearing Corporation (DTCC). The DTCC received a non-action letter from the U.S. Securities and Exchange Commission. The development cleared the path for a tokenized treasury infrastructure on the Canton Network.
Since Thursday, the 18th of December, Canton [CC] has rallied 54.3% at the time of writing. It had flipped the $0.079-$0.082 local resistance to support, and has flipped the market structure bullishly.
In a recent report, these were underlined as the signs that would signal a trend shift. Here’s what traders can keep an eye on, now that a bullish trend is in progress.
Swing traders bullish on CC after recent price action
Source: CC/USDT on TradingView
The 12-hour structure saw a bullish shift on Friday, the 19th of December. The swing high at $0.079 was breached, forcing a structure change. Moreover, the $0.082 local resistance was also broken.
Over the past three days, the OBV continued to climb higher as CC rallied on above-average trading volume. Strong demand and high trading volume reflected market confidence.
Source: CC/USDT on TradingView
A bearish divergence between momentum and price came in recent hours of trading. It suggested that CC was likely to face a minor price dip.
The technical and psychological $0.01 support level was likely to be tested as support soon.
The bearish breakdown- and why it is the less likely outcome
The bearish divergence, combined with the sizeable weekend rally, were the two arguments for the bearish case. In this scenario, CC would retrace all the gains made since Friday, as investors rush to sell the news.
Traders’ call to action — Stay bullish on CC
A retest of the $0.01 support would offer a good buying opportunity for lower timeframe traders. A drop below $0.095 would indicate dampened bullish spirits and would serve as the invalidation for the bulls.
The longer-term structure break and rising volume suggested a trend shift was in progress. It would be aided by a strong Bitcoin [BTC] performance on Monday.
Traders need to remain nimble to further developments. For now, the bullish setup has a good chance of working out and presents a clear invalidation.
Final Thoughts
- The regulatory green light allows DTCC to tokenize assets on the Canton Network.
- This development has driven the rally since Friday, and market sentiment remained bullish at the time of writing.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Go to Source to See Full Article
Author: Akashnath S
