Quant (QNT) holders have cheered a smooth upside journey within the past seven days as the overall market encountered the heat. However, what rises must fall, and QNT already reflected retracement signals. Moreover, the alt could be ready for a swift short position. Here’s why.
QNT has ended a highly bullish 7-day move, gaining approximately 48%. The rally emerged after the token retested a near-term foothold that comprised its near-term ascending channel. The alternative coin hit the $145 peak before a slight retracement to press time’s $135.
Though the token hit new five-month highs, QNT exhibits overbought conditions at its current value areas. Moreover, the downside move within the past 24 hours shows an increasing sell pressure. And that might welcome a significant retracement soon.
The downward anticipations go beyond QNT’s price movements. Some on-chain metrics also support such outcomes. For instance, Quant’s velocity index metric pivoted after a halfway rally, plummeting to its lowest mark during this publication.
The low velocity could suggest a weakening trend, meaning bears can dominate the marketplace soon. Quant’s 90d Mean Coin Age index pivoted after hitting new monthly peaks on September 26. That showed some of the market players that held the token in the 90-day timeframe started selling.
Market players interested in QNT’s next trend should check any selling incentives at the present price level. The token’s MVRV (Market Value-Realized Value) ratio also pivoted after hitting a 21.7% monthly peak. The MVRV suggested that most individuals that purchased at monthly lows enjoy massive profits.
That means a selling incentive if these surges encounter possible erosion amidst a substantial retracement. Market participants that aren’t confident about the upcoming move should evaluate the token’s age-consumed metric.
Remember, the metric highlights the number of tokens exchanging hands after some dormancy. Meanwhile, Quant saw its age-consumed metric hitting 9.17 million QNT on September 26 and about 2.8 million over the past 24 hours. That shows a massive crypto amount shifting hands over the past few days.
Remember, a massive uptick, especially after a bull phase, confirm an upcoming sell momentum. Though the above metrics don’t offer a decisive confirmation of underway retracement, changes in dynamics might help market players ready for the upcoming move.