Author：Encryption Jianghu

Canton Network has delivered one of the most bullish moves in the cryptocurrency market, leading daily gains with a 12% jump, according to CoinMarketCap.

However, this surge may not be sustainable. A closer look at market activity shows investors pulling back, while others position to profit from a potential downturn.

Investors are stepping out

Canton Network’s [CC] recent gains have been met with skepticism from spot investors as they exit the market.

CoinGlass’ spot exchange netflow shows these investors are selling their CC after the token reclaimed the $0.07480 level, with total sell volume now at roughly $803,000.

Before the sell-off, bullish sentiment had been building. Between the 6th and the 7th of December, buyers spent $1.1 million accumulating CC.

The accumulation trend accelerated after Digital Asset—Canton Network’s parent company—announced it had raised what it described as strategic capital from major global entities including BNY, iCapital, Nasdaq, and S&P Global.

Fundamentals appear strong. The Canton ecosystem reports more than 600 institutions using its privacy technology across $6 trillion in tokenized on-chain assets.

This context suggests the latest spot selling is more likely profit-taking than a complete loss of bullish conviction.

The real threat comes from derivatives

The main concern now emerges from the derivatives market, where traders are actively positioning for a downside move and some are aiming to profit from a decline.

To contextualize the shift, the overall derivatives market is not entirely bearish. In the past day, volumes have tilted toward a rally.

The long-to-short ratio—which tracks buying versus selling volume—is currently above 1, indicating more buying activity than selling.

However, Binance and OKX are outliers, showing dominant selling volume at 0.67 and 0.44 respectively. These two exchanges also control the largest derivatives volumes, at $74.59 million and $30.50 million.

Binance traders hold outsized influence because they dominate open interest—the liquidity circulating in derivatives markets. Continued selling could lead to more short contracts opening.

The Open Interest Weighted Funding Rate has also turned negative, signaling that selling pressure is building.

Accumulation continues, but the outcome is unclear

Technical indicators show steady buying activity based on the Accumulation/Distribution (A/D) line, which has climbed steadily from the 5th of December to press time.

This signals that traders continue to scoop up CC at a discount.

However, the A/D line remains in negative territory, showing selling volume still outweighs the recent accumulation.

There is still room for upside. CC has approached a key descending resistance line on the chart.

Breaking above this level and trending higher would confirm that broader bullish momentum remains intact, and a rebound is still possible.

Final Thoughts

• CC’s gains have been met with growing distribution in the derivatives market, led by Binance and OKX traders.
• Some market segments are quietly accumulating, but sentiment remains too weak to absorb supply.