Canton Network began the week with a bullish outlook, following several institutional partnerships formed over the past few weeks. However, the demonstration did not continue.
CC continues to fall, most notably in the last three days, as investor sentiment changes. The 12% drop in the last 24 hours has become more threatening, increasing the risk of a move towards a record low.
CC risks hitting all-time low
Cantonal Network [CC] has fallen below a key support level that the market had been watching for a possible rebound.
This support, marked in black, previously prevented the price from falling further, even after forming a brief doji candle.
However, the level was not maintained. A decisive bearish candle closed below it, precisely at $0.084.
Source: TradingView
The current candle remains bearish, with another descending candle forming, moving towards the last support level on the chart at $0.072.
A decisive break below this zone would imply that CC could reach an all-time low on the chart, with the possibility of a much steeper decline.
Momentum continues to weaken
Momentum is fading, although the possibility of a rebound is not completely ruled out.
The Accumulation/Distribution indicator shows that investors continue to sell as the A/D line trends downward on the chart.
Total trading volume has now reached 643,000 CC, highlighting the depth of the selling pressure, with investors willing to exit at lower price levels.
Source: TradingView
However, a unique dynamic is emerging. The Chaikin Money Flow (CMF) has also risen, with the indicator surpassing the 0 mark.
This move suggests that some buying activity is still present in the market, indicating that sentiment is not entirely bearish and that a rally is still possible.
There is a greater likelihood of near-term easing as overall market sentiment continues to shift, particularly in the derivatives market.
Market sentiment shows rebound trends
In the derivatives market, despite significant capital outflows, the impact is not yet fully reflected in the positioning of operators.
Open interest has decreased by 10% to around $12 million on the chart. However, the weighted funding rate has remained positive and is currently close to 0.0003%. This suggests that there is still buying pressure in the market.
Source: CoinGlass
A key factor to monitor will be whether the open interest-weighted funding rate remains positive in the upcoming session.
Doing so may indicate early signs of bullish revival, accompanied by new capital inflows or investors reallocating existing capital to support a potential bullish move.
Final thoughts
- CC remains at a support level, not far from setting a new all-time high, as expected institutional alliances fail to gain traction.
- Capital flight continues to intensify, as liquidity shifts towards safe haven assets and adds further pressure to the market.
