Canton Network is set to unlock another $3.11 million worth of tokens over the next 24 hours. The development may add fresh selling pressure to a market already struggling to find support.
The upcoming release follows a similar $3 million unlock completed yesterday. That was followed by a sharp price decline, raising concerns that another wave of supply could follow.
Could another unlock extend the selling pressure?
Token Unlocks remain one of the most closely watched metrics because they increase Circulating Supply. While not every unlock results in immediate selling, traders often become cautious when large amounts of previously locked tokens enter circulation within a short period.
How are the institutional players reacting to the unlocks?
The network’s Open Interest has declined sharply over the past two days. In the last 24 hours alone, Canton [CC] Open Interest fell 9% to $25 million.
The decline suggested institutional participation weakened as the latest unlock approached. However, Open Interest alone does not confirm whether traders turned bearish or simply reduced exposure.
Even so, retail selling pressure could keep prices under pressure if demand fails to absorb the additional supply.
What are the charts signaling?
The latest supply increase arrived as technical indicators already pointed to weakness.
CC recently broke below the support level of a Bearish Flag around $0.15, a structure that often signals trend continuation after consolidation. The breakdown suggested sellers remained in control following the token’s latest recovery attempt.
The broader trend also remained weak. The token continued trading below its key Exponential Moving Averages (EMAs), indicating bearish momentum persisted.
Until buyers reclaim those levels, rallies could face resistance from traders looking to exit positions or establish new shorts.
Could CC fall to $0.13?
Liquidation Heatmap data showed several liquidity clusters below the current price. These zones often attract price action as leveraged positions accumulate around them.
If selling pressure accelerates following the unlock, the market could move toward those liquidity pockets. Among them, $0.13 stood out as a key support level traders were monitoring.
Whether the unlock triggers another sharp decline remains uncertain. However, rising Circulating Supply, weakening Open Interest, and a bearish technical structure could leave CC vulnerable in the near term.
Final Summary
- Canton Network faces another $3.11M token unlock after yesterday’s release, which coincided with a sharp price decline.
- CC’s Open Interest fell 9%, suggesting traders reduced exposure ahead of the latest supply increase.
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