Introduction: A Sharp Turn in Quant Network’s Price Action
After an impressive 450% price rally over the past four months, Quant Network (QNT) is experiencing signs of potential reversal. As the token approaches critical technical levels, various indicators suggest that the enthusiasm among investors has begun to wane.
Market Dynamics: A Shift in Active Addresses
Throughout QNT’s notable price increase, the number of daily active addresses (DAA) significantly rose, peaking at an all-time high of 10,949 on October 17, according to data from Santiment. This increase indicated that many traders were entering the market as net buyers. However, following this peak, a sharp decline in DAA was observed, with numbers dipping to approximately 6,800 by October 19:
“The DAA readings dropped sharply in the past two days, coinciding with a 25.5% decrease in price.”
Technical Analysis: Profit-Taking and RSI Breakout
As profit-taking set in, QNT’s daily relative strength index (RSI) surpassed 70 on October 17, signaling an overbought condition. While a high RSI alone isn’t a direct indicator of a bearish reversal, it implies that a price correction is increasingly likely:
“An overbought RSI shows that the asset has advanced too quickly, warranting a potential correction.”
As of October 19, the RSI corrected to 65, while QNT’s price fell toward $185, which aligns with a crucial support level in the Fibonacci retracement analysis. Previously, the $185 level served as significant support in August 2021.
Potential Downside Targets
Given the current sentiment and the potential for profit-taking, a break below the $185 level could signal a further decline, with analysts eyeing the $137-$150 support zone as the next target. This area corresponds to both the 0.382 and 0.5 Fib retracement levels, along with the 50-day exponential moving average (EMA), creating a robust support confluence:
“If QNT breaks below $185, it may lead to a 25% drop toward the ultimate downside target of $137.”
Whale Activity: A Key Indicator
The success of Quant Network’s price rally is also closely tied to the behavior of ‘whales’—addresses holding between 100 and 1,000 QNT tokens. Recent data indicates that the count of these whale addresses began to decline on October 16, just before the price and DAA peaked. This transition suggests that profit-taking has become evident:
“Whale activity has commenced selling near the token’s potential price top.”
Conclusion: Navigating the Crypto Waters
As Quant Network faces potential market corrections following its substantial rally, traders must remain vigilant and consider the interplay of technical indicators and market sentiment. The combined insights into active addresses, profit-taking behaviors, and technical support levels highlight the complexities inherent in trading cryptocurrencies. Stakeholders should be prepared for the next steps, keeping a close eye on evolving conditions in the current market landscape.
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