Canton Price Breaks Out, Yet Two Metrics Question A Clean Run To $0.34

Generated by AI AgentJax MercerReviewed byAInvest News Editorial Team
Thursday, Jan 1, 2026 12:39 pm ET2min read
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Aime RobotAime Summary

- Canton's CC token surged 42% to $0.16, driven by DTCC's U.S. Treasury tokenization plan on its network.

- Institutional adoption and $9B in tokenized Treasuries highlight growing real-world asset tokenization momentum.

- Technical indicators show RSI bearish divergence and failed $0.137 breakout, signaling potential consolidation.

- Analysts monitor cup-and-handle pattern and declining social dominance (0.16%) as key factors for sustained growth.

Canton's native token, CC, has surged nearly 42% in a week, driven by institutional adoption and comparisons to the XRP Ledger. The price rose from around $0.12 to $0.16, catching the attention of investors and analysts. This rally aligns with DTCC's announcement to tokenize U.S. Treasuries on the Canton Network, signaling growing momentum in tokenized real-world assets.

The surge coincides with a broader trend in tokenized assets, where total distributed value has tripled in a year. U.S. Treasuries account for a significant portion of this growth, with around $9 billion in tokenized debt. DTCC's move, through its Depository Trust Company, aims to tokenize a portion of U.S. Treasury securities and eventually expand to other assets.

While the price action appears bullish, technical indicators suggest caution. A potential pullback is forming as the RSI shows a bearish divergence, and the price struggles to clear $0.137. Analysts note that this pullback could act as a consolidating phase, but it might not necessarily be a negative sign.

Why the Move Happened

The DTCC's initiative to tokenize U.S. Treasuries is a major catalyst. Frank La Salla, DTCC CEO, stated the collaboration creates a roadmap for tokenizing high-value assets, starting with Treasuries. This move brings institutional credibility and infrastructure to the Canton Network.

Tokenization of real-world assets has gained traction, with total value exceeding $19 billion. BlackRock's BUIDL fund, which provides on-chain exposure to short-term Treasuries, is a major component of this growth. The Canton Network, a permissioned blockchain, is designed for regulated financial institutions to issue and settle tokenized assets, further aligning with institutional requirements.

How Markets Responded

The price action reflects growing institutional interest. Canton Coin has outperformed major cryptocurrencies like

Bitcoin
and
Ethereum
in the past week. Bitcoin and Ethereum were down around 0.5%, while
Solana
fell 3.3%.

Despite the bullish trend, the RSI suggests caution. It rose into the overbought zone but failed to confirm strength due to a divergence between price and momentum. Additionally, the Chaikin Money Flow remains above zero, which could limit downside during the pullback.

What Analysts Are Watching

Analysts are closely monitoring two key metrics. The first is the formation of a cup-and-handle pattern on the daily chart, which could signal a consolidation phase. If the pullback forms a clean handle, the price might resume its upward trend after a reset.

The second metric is social dominance, which has dropped to 0.16% from 2.2%. This decline indicates reduced retail activity, which could help the pattern form cleanly. Lower chatter also means fewer reaction traders, potentially supporting the consolidation phase.

Market participants are also watching DTCC's progress in tokenizing other DTC-eligible assets. If the initiative expands beyond Treasuries, it could further boost Canton's profile and price.

Investors are advised to monitor the Chaikin Money Flow and RSI
for signs of renewed momentum after the pullback.