CC faces technical pressure after breakout: Can the $0.11 price hold the key support?

Canton Network (CC) received support from the U.S. Securities and Exchange Commission(SEC) non-complaint letter last week, leading to a significant market reaction. The Depository Trust & Clearing Corporation(DTCC) was explicitly permitted to establish tokenized treasury infrastructure on Canton Network, and this regulatory green light ignited traders’ enthusiasm. Since Thursday, December 18(, CC has risen a total of 54.3%, breaking out from the original $0.079-$0.082 range to the current $0.11 level.

From 24-hour rebound to cycle-level structural reversal

The initial 36% intraday gain) accompanied by a 307% surge in trading volume( demonstrated strong market consensus. This rebound occurred over the weekend, showing an immediate response to positive regulatory news. The local resistance at $0.082 successfully flipped to support, completing a structural shift on the 12-hour cycle. Over three consecutive days, the On-Balance Volume)OBV( indicator continued to rise, confirming the support strength of trading volume.

Bitcoin’s role as a market indicator cannot be ignored. Currently, BTC hovers around $92.97K, and its strong performance will further boost CC’s upward momentum. However, CC’s current quote of $0.11 has already retraced from the initial rally, with a 24-hour decline of -2.28%, indicating some profit-taking pressure.

Hidden technical risk: Bearish Divergence signal

A key technical warning is emerging. Recent trading shows bearish divergence—price making new highs while momentum indicators show exhaustion. This phenomenon often signals a short-term price correction, even if the overall trend remains bullish. The psychological support at $0.01 could become the next test level.

Traders face a dilemma: should they bearishly view CC’s “good news exhausted” decline? Fundamentally, the regulatory approval from DTCC represents significant progress in long-term infrastructure development. Technically, if CC falls below $0.095, it indicates a loss of bullish confidence, serving as a reversal signal.

Practical trading framework

If the bullish case continues: a pullback near $0.01 will provide a good low-risk entry point for short-term traders. The combination of structural breakout and volume evidence is sufficient to support continued upward movement. The synchronized strength of Bitcoin will be a key catalyst.

Risk management points: set a stop-loss at $0.095. A break below this level indicates the bullish scenario has been invalidated. In the context of bearish divergence, position management becomes especially important.

The regulatory support received by Canton Network opens the door for tokenized assets. Regardless of short-term technical fluctuations, this positive development has strategic significance. Traders need to stay flexible, monitor sudden developments, and adjust strategies accordingly. The current setup offers a clear win/loss scenario: as long as $0.095 is maintained, the bullish trend remains valid.