3 reasons why Quant Network's QNT token may have topped after 450% gains since June

The terms of Quant Network (QNT) eyes a crisp reversal aft an awesome 450% rally successful the past 4 months.

QNT's downside outlook takes cues from a flurry of method and on-chain indicators, each suggesting that investors who backed its terms rally person apt reached the constituent of exhaustion.

QNT/USD regular terms chart. Source: TradingView

Here are 3 reasons wherefore it could beryllium happening.

Quant's regular progressive addresses drop

Interestingly, the play of QNT's monolithic uptrend coincided with akin upticks successful its fig of regular progressive addresses (DAA). This metric represents the fig of unique addresses progressive connected the web arsenic a sender oregon receiver.

As of Oct. 17, the Quant Network's DAA reached an all-time precocious of 10,949, up from astir 5,850 4 months ago, data from Santiment shows. Its upsurge during the QNT terms uptrend shows traders were nett buyers.

However, the DAA readings dropped sharply successful the past 2 days, reaching astir 6,800 connected Oct. 19. Simultaneously, QNT's terms fell by 25.5% to $171 successful the aforesaid period, suggesting that galore traders person been securing their profits.

Quant Networks's terms versus regular progressive addresses. Source: Santiment

QNT terms downside target

The profit-taking successful the Quant Network marketplace comes arsenic its regular comparative spot scale (RSI) crossed supra 70 connected Oct. 17, hinting that the plus is overbought.

An overbought RSI does not needfully mean a beardown bearish reversal, however. Instead, it shows that the terms has moved upward excessively rapidly and, thus, a correction is becoming progressively apt earlier the uptrend could resume.

QNT's regular RSI corrected to 65 connected Oct. 17. Simultaneously, the token's terms dropped toward $185, coinciding with its 0.236 Fib enactment of the Fibonacci retracement graph shown successful the illustration below.

QNT/USD regular terms chart. Source: TradingView

The $185-level was instrumental arsenic enactment successful August 2021. But fixed the existing profit-taking sentiment, the level whitethorn not clasp for long, which could effect successful an extended diminution toward the $137-$150 enactment range.

The country falls betwixt QNT's 0.382 and 0.5 Fib lines and further coincides with its 50-day exponential moving mean (50-day EMA; the reddish question successful the illustration above), creating a beardown enactment confluence. Therefore, a interruption beneath $185 could person QNT bears oculus $137, a 25% drop, arsenic the eventual downside people by the extremity of the month.

QNT whales diminish

The play of Quant Network's 450% terms rally heavy coincided with the summation successful the fig of addresses holding betwixt 100 QNT and 1,000 QNT tokens, dubbed arsenic "whales" by Santiment.

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However, the whale number started dropping connected Oct. 16, a time earlier QNT's terms and DAA topped out. Meanwhile, addresses holding betwixt 1,000 QNT and 10,000 QNT tokens besides fell, suggesting that the plunge successful the 100-1,000 QNT cohort was owed to token distribution, not accumulation.

Quant Network addresses holding 100-1,000 QNT and 1,000-10,000 QNT tokens. Source: Santiment

In different words, QNT whales person started selling their holdings adjacent the token's imaginable terms top, raising possibilities that the diminution could proceed toward the method targets, arsenic mentioned above.

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