Key Takeaways:
- Quant (QNT) rockets 126% since Sep 22.
- The rally threatens to fizzle out as QNT retests significant resistance.
- Technicals point to a reversal ahead.
YEREVAN (CoinChapter.com) – Quant (QNT) price defied the bearish sentiment across the digital asset market and rallied over 50% since Oct 14, totaling Quant investors’ gains at 126% since Sep 22.
As a result, QNT peaked just below $230 early on Oct 17. However, the Quant price prediction turned bearish as the rally cooled off hours later, and the token settled at $208 in the European session.
QNT Price Prediction
Quant token peaked under $230, notably an old resistance level. However, the rally fizzled out shortly after with little hope for a bullish retaliation. If QNT loses altitude in the coming sessions, it could drop to the previous resistance-turned-support at $120.
Notably, the recent rally resulted in an overbought relative strength index (RSI; the purple graph on the chart above).
In short, the RSI is a momentum indicator that reflects the market’s best entry and exit points. When the RSI charts over 70, the investors expect the price appreciation to reverse, constituting a profitable market exit. As more traders exit, the price declines.
Also read: Stocks Have More to Bleed While Bitcoin Retests Resistance Below $20K.
Moreover, the broader market conditions favor the bears, as recession threatens to push the stocks into a deeper drawdown. Due to Bitcoin’s correlation with equities, the flagship crypto is likely to follow, dragging altcoins to the bottom.
Admittedly, the QNT rally did not go in tandem with the rest of the digital assets. However, a solo rally is not likely to last. Thus, Quant price prediction is bearish as of Oct 17.
Why Did Quant Rally?
The reason behind the Quant rally is not quite clear. The blockchain could have experienced an influx of traders in the previous month, increasing the buying pressure. However, the lowering trading volumes do not support the euphoria on the QNT chart.
In short, the dropping trading volumes intensified the selloff fears, proving the traders’ unwillingness to dive into risk-on assets in turbulent economic conditions. However, Michael Van de Poppe, the chief executive of consulting firm EightGlobal, agreed with the outlook.
He noted that Quant has to retest the $172 resistance as support for QNT price prediction to turn bullish.
Quant token has yet to confirm the theory mentioned above, as it did not drop below $200 as of Monday’s European session. Thus, investors should hold out for further pointers to make a decision.
