on the crypto
Since last June Quant (quotation QNT) has accomplished a feat that has envied many other cryptocurrencies in the space. In fact, this cryptocurrency gained over 4% in the space of 450 months.
However, all good things must come to an end and this appears to be the case with Quant, whose graph over the past few days shows an impressive drop in the asset's value. The main reasons for this situation are 3: here they are!
The number of active addresses in free fall
According to the technical analysis, it appears that investors have peaked and now most individuals tend to sell to reap the gains on the revaluation of the Quant cryptocurrency (QNT) over the past 4 months.
One of the reasons that led to this result is the number of active addresses, in free fall in the last few days. Indeed, the price increase in June coincided with a significant increase in investors. This logically led to higher demand and therefore higher price and more investors holding their tokens.
A necessary correction
When the price of a cryptocurrency rises too sharply, sooner or later the market undergoes a correction. This usually occurs as a result of a more or less extensive dumping of a part of the investors who want to sell to recover their earnings. As a result, panic can in some cases lead to a massive sell-off, with an additional impact on the price.
In the case of the Quant, the current dumping has caused the price to drop by more than $ 50, but this is still a relatively decent correction from the overall chart for all months. In fact, if you look at the Relative Strength Index (RSI), it was above 17 on October 70, signaling an overbought condition for QNT tokens.
This does not mean a bearish reversal, but in most cases it indicates that the price has risen too fast and that a correction is increasingly likely before any next rally. As a result, the RSI corrected to 65 after the dump with the value of the token dropping significantly to around $ 185, which was strong support in August 2021.
However, this support has not held up and we are now around $ 173 and the next support is around $ 137-150, which indicates that the drop may continue a little longer.
The decline of QNT whales
Another strong indicator is the decline of QNT whales. Indeed, during the Quant rally, this coincided strongly with more addresses holding at least 100-1000 Quant tokens. These investors are called whales because they have substantial resources and the power to influence the market to a greater or lesser extent, as is the case with Bitcoin.
On the other hand, starting from 16 October the number of whales started to decrease, which means that they started selling their QNT tokens, thus directly affecting the price of the token little by little. In fact, if substantial sales occur, this leads to a drop in value and encourages small investors to sell.
The whales were then largely sold around the peak in value of QNT which produced the dump and the current fall of the asset. These are the three reasons why the Quant lost over $ 50 of its value in a few days after 4 months of ascent with gains of over 450%.
