- CANTO was outperforming the broader market at press time.
- The recent outage on the Canto blockchain sparked concerns.
- CANTO was up 40% despite a series of outages that have rocked the network in the last few days. The chain went down on Sunday, the 11th of August, but developers later deployed a fix that brought it back online for around 90 minutes before halting again.
CANTO surges amidst network outages, showing remarkable resilience in crypto markets.
Outages Cause Alarm But Fail to Deter CANTO’s Price Rally
The CANTO blockchain faced significant challenges this past week due to a series of outages. On August 11th, the network experienced a disruption, which was temporarily rectified but led to further complications within less than two hours. According to Canto Explorer, block production ceased once more on August 12th at 14:02 UTC. The developers cited unforeseen secondary effects from a recent network upgrade as the reason behind the outages. Despite these setbacks, block production was forecasted to resume on August 13th following the deployment of a new patch.
Market Reaction and Token Performance
Contrary to expectations, the network outages did not significantly impact CANTO’s market performance. The token demonstrated a robust recovery, boasting a 40% increase in value over a 24-hour period. By the time of writing, CANTO was trading at $0.064, with data from CoinMarketCap indicating an 87% surge in trading volumes, presumably driven by a spike in buying pressure. Technical indicators further affirm this bullish outlook: the Relative Strength Index (RSI) showed an upward trend, while the Chaikin Money Flow (CMF) suggested that buying momentum was gradually exceeding selling pressure, despite still being in the negative territory.
Technical Analysis Points to Potential Growth
Chart patterns appear to support the continuation of CANTO’s upward price movement. A falling wedge pattern—a bullish signal—has formed, indicating that the token may be gearing up for further gains. Should the price break above the upper trendline of this wedge, CANTO could target the 1 Fib level, around $0.12. Conversely, failure to maintain the current uptrend could result in a price retreat to the 0.236 Fib level, approximately $0.0116. This technical backdrop provides a relatively balanced perspective on potential price trajectories.
Community Concerns and Future Outlook
Despite the positive price action, the Canto network’s community has raised several concerns. Helius Labs CEO Mert Mumtaz criticized the team for insufficient engagement, stressing the importance of communication, especially during critical times. Additionally, data from DeFiLlama reflects a sharp decline in the network’s Total Value Locked (TVL), plunging from over $200 million in March last year to just $14 million currently. This significant drop signals waning investor confidence and reduced demand for Canto’s protocols. Analyst Marty Party also highlighted a slump in on-chain activity, presenting a formidable challenge to the network’s long-term viability.
Conclusion
In summary, while CANTO has shown impressive resilience and robust price performance despite recent network outages, it is not without its challenges. The community’s concerns about communication and the notable decline in TVL indicate areas that the Canto team needs to address to sustain long-term growth. Investors and stakeholders should closely monitor upcoming patches and community updates as these will be critical in determining the network’s future trajectory. The current bullish momentum offers a promising outlook, but the underlying issues must be resolved for sustained success.
