Will the new supply trigger selling?
Following the issuance of these tokens, there has been an unprecedented spike in the circulating market cap across the network.
In fact, in the last 24 hours alone, Canton’s total circulating market cap spiked by more than $100 million.
The influx in supply may create some short-term pressure, especially if reward receivers decide to sell off some of their shares. However, it is worth noting that a big unlocking event does not necessarily mean selling. Especially when the tokens are unlocked to various network stakeholders and not straight out to investors or insiders.
According to the unlock reports, Canton’s tokenomics structure allocates CC rewards across application providers, validators, and super validators. Here, the reward distribution is designed to support network participation.
Market activity has been on the rise too. In fact, the same period saw a daily spike in CC’s trading volume of up to $4.25 million.
Can CC reclaim $0.125?
On the price charts, the Canton network’s token seemed to be respecting an ascending trendline support at around $0.096. If successful, the price move will mark its first rejection since the token encountered the supply zone around $0.125. Notably, this occurred roughly two weeks ago.
The trendline had initiated two successful reversals before, highlighting it as a key support for a potential market shift. Holding above it would keep CC’s recovery structure intact and gives buyers a technical level to defend.
If trading activity continues to increase while Canton buyers absorb the newly released tokens, CC could attempt another move towards $0.125. Especially since the token was trading above all key Exponential Moving Averages at press time.
A decisive break above that zone would strengthen the recovery, while a loss of trendline support would expose the token to another round of selling.
All in all, while the unlock has increased the amount of CC available to the market, the price reaction remains the key signal. A hike in volume and a defended trendline could allow buyers to absorb the additional supply and keep the $0.125 resistance in focus.
Final Summary
- Canton unlocked $2.09 million worth of CC tokens, adding fresh supply and volatility to the market.
- CC has continued to hold above its ascending trendline support after an aggressive rejection near $0.125.
