Canton Network’s CC token surged from roughly $0.12 to $0.16 in a breakout tied to institutional adoption and a DTCC initiative to tokenize U.S. Treasuries, yet two flow-based metrics raise doubts about an uninterrupted climb to $0.34. Traders now face a mixed technical picture: a bullish cup‑and‑handle setup on price, countered by muted volume and weakening money‑flow signals.
The move to $0.16 followed reports of significant institutional interest and the Depository Trust & Clearing Corporation’s plans to use the Canton Network to tokenize U.S. Treasuries. That fundamental push underpinned the initial breakout and underpin the bullish scenario projecting a $0.34 target — roughly a 141% rise from the breakout level, according to market commentary on 1 Jan. 2026.
However, two technical metrics have not confirmed the strength of the rally. On‑Balance Volume (OBV) has been essentially flat since the breakout, indicating the advance lacked broad volume support. Chaikin Money Flow (CMF) registered a bearish divergence: while price trended higher from mid‑December into early January, CMF made lower highs, signaling reduced capital inflows from larger participants.
Both signals suggest the rally could be supply‑constrained rather than driven by sustained accumulation.
Levels, patterns and what traders should watch
Price structure contains constructive and cautionary elements. A cup‑and‑handle pattern projects upside targets at $0.26 and $0.34, but a prior failed breakout around $0.137 and a developing RSI bearish divergence point to likely consolidation before any clean run higher. Key technical bands are defined in the Jina source as $0.12–$0.14 for support and $0.20–$0.21 as the immediate resistance zone; a decisive breach above $0.20–$0.21 would materially raise the probability of reaching $0.26 and then $0.34.
Social dominance for CC has fallen to 0.16%, which the reporting noted could limit retail‑driven volatility and allow a more orderly formation of the handle. That dynamic can work both ways: low retail attention may reduce manic spikes, but it also means fewer small buyers to absorb selling, placing more weight on institutional flows to sustain a rally.
For traders and managers, the operational takeaway is clear: the chart offers upside potential, but risk management should assume a consolidation or pullback is the more probable near‑term path. A sustained close below $0.12 would invalidate the breakout structure and increase downside risk, while a clean break and hold above $0.20–$0.21 would materially improve the odds of the $0.26–$0.34 scenario.
Investors are now turning their attention to whether CC can clear and hold the $0.20–$0.21 zone, which will serve as the ultimate test for the breakout thesis and determine if institutional tokenization headlines can translate into broad‑based accumulation rather than a short‑lived spike.
