Quant Peaked at $120. Will Continue Upward or Retrace?

Quant opened Wednesday at $111 and shot up, peaking at $120. The altcoin experienced significant selling pressure, leading to a decline. 

QNT trades close to its opening price at the time of writing. This is not the first time the cryptocurrency has seen such a hike. It surged from $103 to $115 on Tuesday trading conditions improved. Nonetheless, the notable increases in the last three days were a result of a positive change in fundamentals.

Recall that several countries prefer to have a Central Bank Digital Coin rather than approve another cryptocurrency as legal tender. The European Central Bank may be moving towards achieving this goal, as recent reports suggest that it is planning to collaborate with Quant.

The collaboration with the project will increase its visibility to a larger audience. Housing the CBDC may manage over $5 trillion in market value. Investors are aware of this vision and prepared to capitalize on it. Data from Coinmarketcap shows that trading volume increased by more than 500% on Tuesday. 

However, the hype may be waning as the altcoin is experiencing a massive decline in buying and selling volume. The over 11% drop indicates that it is experiencing a decline in liquidity inflow. The drop from the peak suggests the bears are taking over. 

A sweep across the social media platforms shows notable FOMO. Calls for a return to $200 are intensifying following the rejection at $120. However, this may signal the end of the uptrend. Indicators agree with this assertion.

Quant is Overbought 

Traditionally, a massive fear of missing out on an asset signals an impending trend reversal. The relative strength index suggests that this may play out in the coming days. The metric is currently at 72, indicating that the cryptocurrency is overbought and due for a correction.

QNT’s slip from $120 indicates that it is experiencing massive selling action as traders take profits. Comparing this to the events of the last three days, this represents the largest selling pressure it has experienced. Previous price movement suggests that the trend may continue into Thursday. 

Quant broke above its bollinger bands on Monday. It continues above it and trades above the upper Simple Moving Average (SMA). Such a trend typically spells the end of an uptrend and a trend reversal. The cryptocurrency may see further retracement.

Nonetheless, the moving average convergence divergence favors further increases. The metric displays buy signals following its bullish divergence on Tuesday. Its readings are the same as those on the average directional index. The metric indicates that there is still considerable momentum for an uptrend.

Nonetheless, the pivot point standard shows that the cryptocurrency failed to break the fourth resistance decisively. It surged above it on Tuesday and Wednesday but failed the session above it. The metric points to a massive selling congestion around it. 

Bearing in mind the readings from the bollinger bands and RSI, it is easy to conclude that Quant may see further retracements. The PPS hints at a slip to the third pivot resistance at $101. The asset may dip below if the bulls fail to defend it, risking further descent to $92. 

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