Journalist
Published:
Key takeaways
What Triggered Caton Network’s Recent 25% Price Drop?
Bearish sentiment among Bybit traders and rising short positions in derivatives led to a sharp decline.
Is there potential for a rebound in CC prices?
Yes, if the $0.10 demand zone holds, CC could return to the $0.17 level.
Caton Network (CC) took a major hit over the past day, with a sharp drop in market interest forcing the price down almost 25%, as of press time.
Derivatives market activity has been driving the slowdown, with Bybit traders at the forefront, leaving holders and earlier bullish investors in a tough spot.
Bybit investors sparked the CC rally and are now withdrawing their support
CC was listed on Bybit in the early hours of November 10. The listing initially fueled strong bullish momentum as investors rushed in, sending the token soaring 566% to an all-time high of $0.20.
This rise reflects the strong confidence of Bybit investors, many of whom converted their stablecoin holdings to CC to secure early returns.
Source: CoinGlass
But since then, the tide has turned. Market data shows that Bybit investors have adopted a more bearish outlook, particularly in the area of derivatives trading.
Long/short ratio data reveals that 52.39% of trading volume now comes from short positions, at the time of writing, signaling a strong change in sentiment.
Bybit currently controls the second largest open stake in CC, with over $5 million in derivative liquidity, giving its traders significant influence over price direction.
The market as a whole is turning bearish
The bearish mood extends beyond Bybit. Market-wide data shows a general decline in bullish positioning as sentiment continues to deteriorate.
The weighted open interest (OI) funding rate, a metric used to assess market bias, stood at -0.0784% at the time of writing, indicating that the majority of funding comes from sellers.
This suggests that the recent 10% increase in OI (around $1.87 million) is largely due to short traders.
Source: CoinGlass
Likewise, the Long/Short ratio fell below the neutral level of 1.0, falling to 0.9391, confirming that sellers now dominate trading activity more than buyer demand can absorb.
The convergence of these bearish indicators suggests that CC could face further declines unless new purchasing power enters the market to balance the pressure.
Price drop expected before recovery
A short-term decline appears imminent. Liquidation heatmaps show dense near-term clusters below the current price, which could take CC towards the $0.10 range.
These lower clusters often act as demand zones, attracting buyer interest as long contracts are released. If this zone holds, CC could rebound, potentially reclaiming the $0.17 level.
For now, the short-term outlook points to a likely decline before the resumption of a sustained upward movement.
Source: CoinGlass
