3 reasons why Quant Networks QNT token may have topped after 450% gains since June

Quant Network Pricing (QNT) has seen a sharp reversal after an impressive 450% rise over the past four months.

QNT’s downside outlook is cued by a series of technical and on-chain indicators, all of which suggest investors backing QNT’s price hike are likely exhausted. .

Here are three reasons why this might be the case.

Quant’s daily active addresses decreased

Interestingly, Significant upward trend of QNT The number of Daily Active Addresses (DAA) has increased as well. This metric represents the number of unique addresses active on the network as senders or recipients.

As of October 17, Quant Network’s DAA reached A record high of 10,949, up from about 5,850 four months ago, according to data from Santiment. A rise during the QNT price uptrend indicates that traders are net buyers.

However, the DAA figure has plummeted over the past two days, reaching nearly 6,800 on October 19th. At the same time, the price of QNT fell 25.5% to $171 over the same period, suggesting that many traders are securing profits.

QNT Price Down Target

Profit taking in the Quant Network markets suggests that the asset is overbought with the daily Relative Strength Index (RSI) above 70 on October 17th.

However, an overbought RSI does not necessarily mean a strong bearish reversal. Instead, it indicates that the price is rising too quickly, increasing the chances of a correction before the uptrend resumes.

QNT’s daily RSI was corrected to 65 on October 17th. At the same time, the token price fell towards $185, matching the 0.236 Fib line on the Fibonacci retracement graph shown in the chart below.

The $185 level served as support in August 2021. However, given the existing profit-taking sentiment, this level may not last long and may continue to fall towards the $137-$150 support range.

This area lies between QNT’s 0.382 and 0.5 Fib lines, further in line with the 50-day exponential moving average (50-day EMA, red wave in chart above), creating a strong confluence of support. I’m here. Therefore, if $185 breaks down, QNT may target a 25% decline of $137 as an eventual fall target by the end of the month.

QNT Whales Declining

The period of Quant Network’s 450% price increase is coinciding with an increase in the number of addresses holding between 100 QNT and 1,000 QNT tokens, dubbed “whales” by Santiment.

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However, whale numbers started declining on October 16, a day before QNT prices and DAA reached their all-time highs. On the other hand, from 1,000 QNT he also reduced the address holding 10,000 QNT tokens. This suggests that the plummeting of the 100-1,000 QNT cohort was due to token distribution rather than token accumulation.

In other words, the QNT whale is starting to sell its holdings near the upper end of the token’s potential price, increasing the likelihood that the decline will continue towards its technical targets as described above.

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