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The price of the CANTO token fell on Sunday by 11%, following the news.
Canto, built on the Cosmos blockchain, experienced an outage that halted the chain’s operation. The stoppage occurred after its Callisto upgrade on Saturday.
On August 11, Canto developers announced on their official X page that the chain had a consensus issue, which affected its operation. They calmed the situation by announcing that an upgrade to address the issue would be carried out on Monday, August 12 at 12:00 UTC.
The developers, in response to the fear, uncertainty, and doubt that might have arisen because of the operational stoppage, assured their users that their funds were safe and would be accessible for user operations as soon as the chain resumed.
Canto Price Action Remains Positive Short-Term, Sees Double-Digit Increase
The price of the CANTO token fell on Sunday by 11%, following the news; before that, it had been trading sideways since Tuesday, August 6. However, it has risen more than 30% today, which could be a positive sentiment toward the assurance about fund security and the upgrade plan by Canto developers.
Photo: TradingView
Despite the ongoing recovery and price surge today, Canto remains in a strong downtrend when the price action is observed from a broader perspective. Three different price action metrics indicate that the current bullish move may only be a retracement (corrective move) rather than a total trend change. The price is still below the 50-day and 200-day simple moving averages, which could potentially serve as resistance to price growth in the medium term.
In addition, the price is trading under a descending triangle channel, which has been both support and resistance since March. The consolidation experienced within the past few days has been at the base of the pattern.
We could see a bounce to the top of the channel within the next few days before the downward move continues. However, a breakout above the top of a descending triangle pattern will be interpreted as a super bullish signal, which could propel Canto’s price to heights not seen in the past few weeks and months.
Canto Developers Seem to Be Handling It Well
The Canto blockchain outage is not the first in the crypto ecosystem. These blockchain breakdowns also have various effects on the affected community and can be caused by software upgrades, just like in the case of Canto, hardware failure, cyberattacks, or venom governance issues. The effect can lead to delayed transactions or a total halt.
For example, Stacks nodes had around 9 hours of disruption, which affected the functionality of applications that depend on its blockchain in June. Following this, it dipped by close to 50% in just 3 weeks.
The aftermath of these outages has been largely dependent on how the developers managed them. With the bullish move (+30% spike today) that Canto is experiencing, it could be said that the developers and community are handling the situation well.
