Is the hype around QNT fading? After facing rejection at $326, Quant lost the $300-support and fell to a low of $237.
At press time, QNT was trading at around $239, down 18% on the daily charts. Over the same window, the spot trading volume fell by 33% to $474 million too.
This fall in value was driven largely by intense selling pressure as investors turned to cash out their recent gains. Just recently, the altcoin recorded 250% weekly gains, with the same leading to significant profit-taking. This market behavior has now possibly become even more stubborn.
Quant investors reduce exposure after a parabolic rally
As Quant’s [QNT] decline persisted on the charts, a significant share of bulls were kicked out of the market. According to Coinglass, QNT saw over $4.8 million in total liquidations. Longs suffered the most, with $3.5 million in longs liquidated.
The elevated liquidation risk, especially for longs, triggered fear. As a result, traders hurriedly closed their positions.
Within a single 24-hour period, Quant Futures recorded $480 million in outflows compared to $453 million in inflows. As a result, the Futures Netflow fell by 1120% to -$26.7 million.
Such a massive drop in Netflow hinted at risk aversion, with traders choosing to exit before the price dropped further.
On top of that, the altcoin’s Open Interest seemed to confirm this shift in sentiment as it fell by 15% to $167 million.
A look at the Spot market
The Spot market saw elevated profit-taking throughout the recent price hike. A look at the Spot Netflows revealed that the metric has mostly been positive since the rally started.
Over the past week, Netflows fell negative only twice. At press time, the metric sat around $1.3 million, marking a notable reversal from -$11 million the previous day.
Such a shift in flow suggests that most investors are actively cashing out. High profit realization creates more downside pressure on the charts.
In fact, every time the Netflow climbed into the positive zone, the price retraced. The trend is likely to continue this time too.
Can QNT hold the pressure?
On the daily charts, QNT’s upside momentum seemed to have weakened considerably. A look at the Normalized RVGI revealed that this momentum indicator has declined for three consecutive days, falling to 30 at press time.
A falling NRVGI alludes to fading bullish momentum. Likewise, the Relative Strength Index (RSI) has also continued to drop, forming a bearish crossover.
The RSI was still holding at around 69 though, suggesting that buyers are yet to fully lose control. However, if profit-taking continues, Quant will likely see more losses.
Further losses at the press time price level will lead to a drop below $200, with $195 as a critical support level. If market bulls hold on, reclaiming $300 will remain on the table though.
Final summary
- Quant [QNT] fell by 18%, lost its $300-support and dropped to a low of $236.
- Altcoin is facing selling pressure across the market thanks to risk-off sentiment.