Canton Network began the week with a bullish outlook, following several institutional partnerships formed over the past few weeks. However, the rally failed to hold.

CC continues to decline, more noticeably over the past three days, as investor sentiment shifts. The 12% drop over the last 24 hours has become more threatening, increasing the risk of a move toward an all-time low.

CC risks an all-time low

Canton Network [CC] has slipped below a key support level that the market had been watching for a potential rebound.

This support, marked in black, previously prevented the price from dropping further, even after forming a brief doji candlestick.

However, the level failed to hold. A decisive bearish candle closed below it, precisely at $0.084.

The current candle remains bearish, with another downward candlestick in formation, moving toward 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 fade

Momentum is fading, although the possibility of a rebound is not completely off the table.

The Accumulation/Distribution indicator shows that investors continue to sell, as the A/D line trends lower on the chart.

Total trading volume has now reached 643,000 CC, highlighting the depth of selling pressure, with investors willing to exit at lower price levels.

However, a unique dynamic is emerging. The Chaikin Money Flow (CMF) has also ticked upward, with the indicator pushing above the 0 mark.

This movement suggests that some buying activity remains present in the market, indicating that sentiment is not entirely bearish, and a rebound is still possible.

There is an increased likelihood of a short-term relief move, as overall market sentiment continues to shift, particularly in the derivatives market.

Market sentiment shows rebound tendencies 

In the derivatives market, despite significant outflows, the impact is yet to fully reflect in trader positioning.

Open Interest has declined by 10% to around $12 million on the chart. However, the Weighted Funding Rate has remained positive, currently sitting near 0.0003%. This suggests that buying pressure still exists in the market.

A key factor to monitor will be whether the Open Interest-Weighted Funding Rate remains positive into the next session.

If it does, it may indicate early signs of bullish revival, accompanied by fresh capital inflows or investors reallocating existing capital to support a potential upward move.

Final Thoughts

• CC remains at a support level, not far from establishing a new all-time high, as expected institutional partnerships fail to gain traction.
• Capital flight continues to intensify, with liquidity moving toward safe-haven assets and adding further pressure on the market.