Canton Network’s CC staged a sharp rebound this week, but derivatives activity suggests the rally could face a decisive test.
Price and market cap
- After plunging to $0.079 three days ago, CC shot up to $0.109 and was trading at $0.1063 at press time — a daily gain of 18.24%.
- The jump pushed CC’s market capitalization from roughly $2.8 billion to about $3.9 billion, adding more than $1 billion in market value.
Spot-market picture
- Spot trading showed clear buyer support during the recovery. According to Coinalyze, CC recorded $20.3 million in buy volume versus $17.9 million in sell volume during the rebound — a Buy/Sell Delta of $2.4 million, signaling notable spot accumulation.
- Exchange flow data from CoinGlass reinforced that demand: on Dec. 23 CC saw $147 million in exchange outflows against $110 million in inflows. At press time, outflows stood at $37.44 million while inflows had fallen to $31.81 million, producing a -$5.62 million spot netflow. Historically, persistent outflows like these indicate tokens moving off exchanges into private wallets — a pattern that can reduce available sell-side liquidity and support price upside.
Derivatives surge and risk
- Traders piled into futures as the rebound gained steam. Derivatives volume jumped 187.44% to $156.25 million and open interest rose 34.4% to $19.3 million (CoinGlass).
- Futures flows showed $63.6 million in inflows versus $61.97 million in outflows, lifting futures netflow 242% to $1.43 million — a sign of growing demand for leveraged positions.
- When volume and open interest increase together, it typically signals broadening participation and heavier positioning (both long and short). That can amplify moves in either direction and increase the risk of sharp reversals via liquidations if momentum stalls.
Technical context
- Technical indicators lined up with the flow data: Stochastic RSI formed a bullish crossover and entered overbought territory near 83 (TradingView).
- The Directional Movement Index (DMI) also showed a bullish crossover, with trend strength climbing above 31. Both readings point to buyers being in control in the near term, though overbought readings warrant caution.
What to watch next
- If buying pressure persists, bulls may target the $0.11 level, and a successful break could open the path to roughly $0.135.
- Conversely, if the rally loses steam — especially given heightened leverage in futures markets — a retracement toward the $0.08 area is possible.
Bottom line: CC’s rebound is supported by coordinated spot accumulation and a surge in derivatives participation, but the concurrent rise in futures activity raises the potential for a volatile retest of gains. Traders should watch flows, OI, and key price levels closely.
Disclaimer: This article is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions.
Sources: Coinalyze, CoinGlass, TradingView, AMBCrypto.
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