Canton (CC) increased by 14%, but traders on Binance are betting on a short-term correction.

Canton Network (CC), the blockchain platform for organizations, is experiencing a strong recovery of the native token CC as liquidity flows back into the market.

Perpetual contract traders (perpetual) have played a leading role in driving this capital influx.

However, on Binance – one of the largest cryptocurrency exchanges in the world – investors are increasingly betting on a decline in CC. Here are the notable market developments.

Capital inflows drive a strong increase in CC price

Investor confidence in CC remains high, with the price rising 14% within 24 hours. Currently, 72% of the total 5,200 traders are taking bullish positions (bullish).

This optimism stems from a sudden surge in capital flowing into CC’s perpetual market. Liquidity has reached $39.4 million, a 50% increase from the previous day.

The simultaneous increase in capital inflow and rising prices indicates strong interest from long-position traders. These investors are expecting the upward trend to continue.

The overall market also shows stable strength, with trading volume skyrocketing 120% to $252 million. In the perpetual market, the Long/Short ratio has also increased significantly.

Source: CoinGlassThis index reflects which side controls most of the trading volume over a certain period. Currently, long-position traders dominate, with a ratio of 1.058. When the Long/Short ratio remains above 1, it usually indicates a bullish market with room for further growth.

Technical indicators reinforce the bullish trend

Technical indicators continue to support CC’s short-term bullish outlook.

Notably, the Accumulation/Distribution (A/D) indicator shows CC is still in a strong accumulation phase, with trading volume reaching $200 million. The accumulation phase is when investors continuously buy in, expecting prices to rise in the near or long term.

Source: TradingView This signal aligns with the Parabolic Stop and Reverse (SAR) indicator, which determines trend direction based on the position of the dots relative to the price. Currently, the SAR dots are below the price, indicating bullish momentum remains dominant and the upward trend may continue.

Binance investors cautious about the rally

Although bullish signals are prevailing, traders on Binance are taking a contrarian stance as selling pressure increases.

Data from top traders on Binance shows the long/short ratio is only 0.854, while the overall ratio across the platform is even lower at 0.715. Ratios below 1 typically reflect increased selling activity.

Notably, Binance currently leads in both trading volume and open contracts for CC, at $122.86 million and $12.71 million respectively. If selling pressure continues to escalate on such a major exchange, CC’s price trend could be significantly affected.

Source: CoinGlass In the context of a nearly neutral funding rate (funding rate), CC still faces short-term correction risks before potentially resuming its growth trend.

Mr. Teacher