September was a strong month for many cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Zcash (ZEC), all of which posted significant gains.
Nonetheless, their pumps can’t be compared to what happened with Quant (QNT). The altcoin became a sensation after surging nearly 400% in a month, fueling expectations of a continued bull run among top analysts. On the other hand, traders and investors should tread lightly, as key signals suggest a short-term pullback may be coming.
Final Barrier Before the Real Boom?
As of this writing, it seems surreal that less than two weeks ago QNT was worth around $60. By the end of September, the token’s price skyrocketed to nearly $350, and now it trades just under $280.
Perhaps the biggest catalyst for the rally was the announcement that The Clearing House (which operates payment networks that process over $2 trillion each day) selected Quant to power its On-Chain Money Initiative.
One of the many analysts commenting on the token’s bull run lately is Ali Martinez. Earlier today (October 1), he set $430 as key resistance, which sits at the top of a certain channel.
In his view, a decisive break above this level could send QNT into price discovery mode, potentially triggering another parabolic expansion toward an all-time high of $2,000.
Jia Crypto also made an optimistic prediction, albeit far less bullish than Martinez’s take. She believes QNT could cross $300 “soon with big profits,” and then might rise to $400.
Beware, Bulls
Despite the overall optimism, a further price uptrend is not guaranteed. Lookonchain revealed that the Quant Network founder’s wallet has woken up after seven years of inactivity and has moved almost $7 million worth of QNT. Even if no actual sale occurs, traders may interpret the move as a sign of potential profit-taking, which can trigger uncertainty and panic selling.
Meanwhile, QNT investors have been abandoning self-custody en masse and flocking to centralized exchanges over the past several days. This in turn increases immediate selling pressure.
The token’s Relative Strength Index (RSI) should also serve as a warning. The ratio has surged past 70, suggesting that QNT has entered overbought territory and could be on the verge of a short-term correction. The index ranges from 0 to 100, where anything below 30 is considered a buying opportunity.
Source: CryptoPotato
