We recently saw Quant’s native cryptocurrency QNT retest its ascending resistance in mid-October. We also mentioned a possibility for short sellers. However, in the present, a resistance level breakout has occurred prior to the eventual retracement.
QNT’s bullish price action reflects Quant’s recent emphasis on growth and development. As a result, investor confidence increased, resulting in more upside for the cryptocurrency. The fact that it was able to briefly break out of its support range speaks volumes about QNT’s strength.
QNT’s latest announcement underscores Quant’s aggressive focus on growth and access to liquidity. In fact, the network just announced that it is upgrading its API support for Overledger 2.2.17 for the Ethereum Goerli testnet.
Overledger 2.2.17 improves API support for @ethereum testnet Goerli in anticipation of the retirement of Ropsten and Rinkeby testnets.
More: https://t.co/o6UgnwCPKi #TheMerge #Ethereum #TheFutureOfFinanceToday pic.twitter.com/Z1N4GodCZc
— Quant (@quant_network) October 22, 2022
The announcement did not necessarily have a direct impact on QNT’s price action. Nevertheless, it underscore’s Quant’s focus towards tapping into more liquidity through Ethereum. Ergo, the question – Is this focus enough to support QNT’s performance?
QNT was trading at $171.3, at press time – A figure which represented a 24% drawdown from last week’s highs. The pullback was expected since QNT was deep in oversold territory after its resistance line breakout. It has since pulled back to within the same support and resistance range.
QNT’s performance after the previous support retest suggests that it might already be in a new short-term trend that favors the bulls. Its RSI’s lows supports this analysis and if it holds true, then investors should be looking forward to another RSI bounce if the price dips lower. Such an outcome will push the price back towards the resistance line.
Quant’s realized cap metric seemed to confirm that most investors are not selling, despite the ongoing retracement.
On the other hand, a high realized price might be a sign that there is adequate exit liquidity for incoming sell pressure. The recent pivot in Quant’s network growth may further support this outcome.
Quant’s network growth and velocity have reduced significantly since 17 October. This might be confirmation that the relative strength the cryptocurrency demonstrated last week is fading.
QNT holders might be tempted to sell some more as the network velocity and growth taper out. If the network pursues this outcome, then investors should expect some more potential downside. We might see the price drop to $165 before experiencing the next wave of buy pressure and a potential bounce at the 50% RSI.
The other side of the altcoin highlights the potential for more upside. Investors should watch out for increased money flow and accumulation near the prevailing level. A conducive market environment, as well as favorable whale activity, may favor the bulls.