Canton Network rockets 36% after DTCC green light: Is a new market phase starting?
Canton Network’s native token CC has staged a powerful breakout, jumping about 36% in the last 24 hours and roughly 54% since 18 December. The move has not only flipped key resistance levels into support but has also shifted the broader market structure into a clearly bullish configuration, raising the question: is this the beginning of a larger uptrend for tokenized finance plays?
The latest surge coincided with a 307% spike in daily trading volume, a sign that the move was driven by strong participation rather than thin, weekend liquidity. That kind of volume expansion typically signals conviction behind the price action, not just speculative noise.
DTCC catalyst: regulatory clarity meets tokenization
The immediate trigger for the rally was fresh news around Canton Network’s institutional partnerships. Just days after the announcement of a collaboration with the RedStone (RED) oracle, another, far more impactful development hit the market.
The Depository Trust & Clearing Corporation (DTCC), one of the most critical infrastructure players in traditional finance, received a non-action letter from the U.S. Securities and Exchange Commission. That letter effectively cleared the way for DTCC to advance a tokenized U.S. Treasury infrastructure built on the Canton Network.
In practice, this means institutional-grade tokenization experiments and pilot programs can proceed with greater regulatory comfort, using Canton as a base layer. For a network pitching itself as a backbone for regulated digital assets, this is exactly the kind of validation investors were waiting for.
The market’s reaction was swift: CC broke through local ceilings that had capped the price for weeks, signaling a potential re-rating of the asset as participants began to price in the possibility of real-world, large-scale usage.
Key levels break: from $0.079–$0.082 barrier to fresh support
From a technical perspective, the 12‑hour chart logged a decisive shift in structure on Friday, 19 December. The previous swing high around $0.079 was taken out, forcing a bullish market structure change. Shortly after, the local resistance in the $0.079–$0.082 zone was convincingly breached.
This same region has now flipped into a support area, which is often a hallmark of a new trend phase. When former resistance becomes support on rising volume, it typically indicates that buyers are willing to step in higher than before, absorbing supply from earlier sellers.
At the time of writing, CC has advanced more than 54% from its 18 December levels, firmly establishing itself above that prior resistance band. As long as the price holds above the $0.079–$0.082 area, the bullish bias remains intact.
Volume and OBV: demand is in control – for now
Over the last three days, the On-Balance Volume (OBV) indicator has been steadily climbing in tandem with the price. This confirms that the latest push is backed by genuine inflows rather than isolated spikes.
Above‑average trading volume throughout the rally further reinforces the bullish thesis. Strong volume accompanying a breakout often indicates institutional or larger directional players stepping in, rather than short-term scalpers chasing a thin move.
For trend traders, this combination of:
– a higher‑timeframe structure break,
– rising OBV, and
– a sustained expansion in volume
often marks the early stage of an uptrend rather than its exhaustion point.
The warning sign: emerging bearish divergence
Despite the strong backdrop, the short‑term picture is not entirely one‑sided. On the lower timeframes, a bearish divergence has started to form between price and momentum indicators. In simple terms, while price continued to make higher highs, momentum indicators (like RSI or similar tools) clocked lower highs.
This kind of divergence commonly foreshadows a cooling phase or a shallow pullback. It does not automatically negate the broader bullish trend but suggests that chasing the move at its most extended point can carry elevated risk.
In such a scenario, a dip toward nearby support levels becomes likely as over‑eager late entrants are shaken out.
Key support zones: where buyers may step in
The technical and psychological support around the $0.01 mark is one of the major levels traders are watching. Although price is currently trading well above it, a retest of this area as support is seen as a plausible development if the correction deepens.
On shorter timeframes, any revisit of the $0.079–$0.082 region is also important. That band, previously a resistance cluster, now serves as a litmus test for how strong the new uptrend really is. If bulls defend it, it would likely confirm the breakout’s validity and could attract fresh capital.
Another level frequently mentioned in risk‑management plans is the $0.095 zone. A decisive move below $0.095 would signal that bullish momentum is fading faster than expected and might serve as an invalidation threshold for aggressive long setups.
The bearish scenario: “sell the news” retrace
Skeptical traders highlight two main arguments for a near‑term bearish outcome:
1. The sizable weekend rally, which sometimes lacks follow‑through when traditional markets reopen.
2. The emerging bearish divergence on intraday momentum indicators.
Under a pronounced “sell the news” scenario, CC could retrace a major part – or even all – of the gains logged since Friday. Early profit‑takers, combined with short‑term speculators exiting on weakness, could accelerate such a move.
For nimble traders, however, that kind of retrace may not be purely negative. A deep pullback into major support zones often sets the stage for attractive, lower‑risk entries, provided the broader narrative and longer‑timeframe structure remain bullish.
The bullish case: trend shift backed by fundamentals
On the other side, the bull thesis remains compelling:
– A clear break of the longer‑term bearish structure.
– Transition of the $0.079–$0.082 zone from resistance to support.
– Rising volume and OBV pointing to sustained demand.
– A powerful fundamental catalyst in the form of DTCC’s tokenization initiative.
– Growing integration with infrastructure partners like the RedStone oracle.
If these ingredients hold, what we’re seeing now could be the early innings of a new, medium‑term uptrend rather than a mere short‑lived pump.
The macro backdrop could add further fuel. A strong performance from Bitcoin, especially at the start of the traditional trading week, often boosts risk appetite across the broader crypto market. In such an environment, tokens with fresh, institutionally relevant narratives – like Canton Network – tend to attract disproportionate attention.
Is this the start of a “tokenized treasuries” narrative?
Beyond the immediate price action, the DTCC development taps into a larger theme: the tokenization of real‑world assets, particularly highly liquid and regulated instruments like U.S. Treasuries.
If Canton becomes one of the default infrastructures for tokenized bonds or money‑market‑style instruments, that could reposition CC from a speculative altcoin to a core infrastructure asset within institutional digital markets. That sort of narrative shift often takes months to fully play out in price.
In other words, the current rally might be the market’s first attempt to price in the possibility that Canton evolves into a critical part of the emerging tokenized finance stack.
How traders might approach CC in this environment
For swing traders aligned with the bullish scenario, a common strategy would be:
– Wait for a pullback into a previously broken resistance zone (such as $0.079–$0.082) or nearer psychological supports.
– Look for confirmation of buyer strength (rejection wicks, volume spikes on bounces, improvement in momentum).
– Define invalidation clearly, for example, a sustained move below $0.095 or deeper structure breaks on the 12‑hour chart.
Short‑term traders, meanwhile, may try to capitalize on volatility both ways, using the bearish divergence as a cue to take partial profits on longs or to attempt limited counter‑trend shorts, with tight risk controls.
Longer‑horizon participants might pay less attention to intraday swings and instead track:
– Progress on DTCC’s tokenized treasury infrastructure.
– Additional institutional partnerships or pilot programs.
– Upgrades or ecosystem growth around Canton’s technology stack.
What to watch next
Over the coming days and weeks, several signals will help clarify whether this is the start of a sustainable uptrend or just a sharp reaction to headline news:
– Does CC hold above the $0.079–$0.082 support band on pullbacks?
– Does OBV continue to trend higher, confirming steady accumulation?
– Does Bitcoin maintain or extend its strength, keeping risk sentiment constructive?
– Are there follow‑through announcements or concrete milestones from the DTCC initiative, rather than just a one‑off headline?
If the answers skew positive, the probability of a new, durable trend in Canton Network increases substantially.
Bottom line
For now, the balance of evidence leans bullish: structure has turned upward, volume supports the move, and the fundamental catalyst is both credible and thematically powerful. Bears do have short‑term arguments in their favor, rooted mainly in overextension and momentum divergence, but they are fighting against a strengthening higher‑timeframe trend.
As always, participants should treat CC as a high‑risk, volatile asset. Thorough independent research, clear risk limits, and scenario planning for both bullish and bearish outcomes remain essential.