3 reasons why Quant Network's QNT token may have topped after 450% gains since June
The price of Quant Network (QNT) eyes a sharp reversal after an impressive 450% rally in the past four months.
QNT's downside outlook takes cues from a flurry of technical and on-chain indicators, all suggesting that investors who backed its price rally have likely reached the point of exhaustion.
Here are three reasons why it could be happening.
Interestingly, the period of QNT's massive uptrend coincided with similar upticks in its number of daily active addresses (DAA). This metric represents the number of unique addresses active on the network as a sender or receiver.
As of Oct. 17, the Quant Network's DAA reached an all-time high of 10,949, up from around 5,850 four months ago, data from Santiment shows. Its upsurge during the QNT price uptrend shows traders were net buyers.
However, the DAA readings dropped sharply in the past two days, reaching nearly 6,800 on Oct. 19. Simultaneously, QNT's price fell by 25.5% to $171 in the same period, suggesting that many traders have been securing their profits.
The profit-taking in the Quant Network market comes as its daily relative strength index (RSI) crossed above 70 on Oct. 17, hinting that the asset is overbought.
An overbought RSI does not necessarily mean a strong bearish reversal, however. Instead, it shows that the price has moved upward too quickly and, thus, a correction is becoming increasingly likely before the uptrend could resume.
QNT's daily RSI corrected to 65 on Oct. 17. Simultaneously, the token's price dropped toward $185, coinciding with its 0.236 Fib line of the Fibonacci retracement graph shown in the chart below.
The $185-level was instrumental as support in August 2021. But given the existing profit-taking sentiment, the level may not hold for long, which
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