It’s an understatement when we say that it’s been a red year for the cryptocurrency ecosystem. But while the broader crypto market continues to linger in bear territory, one cryptocurrency has climbed undeterred and now ranks as the 29th crypto with the biggest market capitalisation with a market cap of $2.25 billion. That crypto is Quant (QNT) and it has rallied over 450% in the last 4 months.
To put this into perspective, the crypto space experienced its worst quarterly performance in over 10 years over the past four months.
Quant (QNT) was trading at half its price exactly one month ago. Two days ago, it broke through the $200 mark for the first time since November last year and is currently writing its fifth weekly green candle, according to technical data from TradingView. At the time of writing, Quant is trading at $185.08.
Experts explain that QNT is currently carried by an extremely large hype, reflected in the Relative Strength Index (RSI) which is close to a value of 75. An RSI of over 70 indicates an overheated market, as the price has risen too high too quickly. According to trading theory, a cool-down in the form of a retest of the last high at $133 for QNT could be possible.
However, before we dive further into this, let us look at why QNT defied the current market trend for four months;
News continues after this ad
Why QNT is Rallying
- One of the drivers for the hype seems to be the news circle over the last few weeks. In particular, the global trend and call for Central Bank Digital Currencies (CBDCs) have garnered Quant extremely positive headlines. Quant’s CEO, Gilbert Verdian, is extremely well-connected, as a pseudonymous Quant community member recently revealed.
- Verdian took a seat at the European Central Bank alongside the Central Bank of Italy, the Central Bank of Lithuania, and the London Stock Exchange. The crypto community has given Verdian the title of the most connected and experienced CEO in cryptocurrency today.
- Another driver of success for the Quant Network, founded in 2015, is the demand for interoperability, which is to enable interaction between different public and private blockchains at the same time. For this reason, MIT is working with Quant Network to create blockchain interoperability at the scale of the Internet. A partnership with MIT speaks volumes to the prospects of Quant Network and this has investors excited for what is to come.
- There is also serious speculation that the Quant Network, with its interoperability feature, would play a central role in the development of central bank digital currencies. This has also contributed to the rally in recent weeks and triggered FOMO among some traders.
- Moreover, Quant Network has recently made headlines for its work with the Bank of England on the digital pound, and just last weekend, executives attended SWIFT’s Sibos conference, which focused on digital payments.
- In addition to Verdian, Quant also employs another very renowned personality. Guy Dietrich, who was the former Managing Director at Rockefeller Capital. He has already joined the Quant Network as a board member in 2019. Dietrich was a managing director at Rockefeller Capital Management in New York until January 2021. He has more than 35 years of investment experience. Before joining Rockefeller, he led Morgan Stanley Smith Barney’s largest private wealth management practice in Silicon Valley.
What You Should Know
- QNT is the only top 30 coin boasting an overbought status, which is a signal flashed by a popular technical analysis tool called the relative strength index (RSI), indicating strong upward momentum. That’s an envious achievement, considering the broader market has shown little signs of life since the May-June crash.
- An RSI above 70 implies overbought conditions, while a reading under 30 suggests the asset is oversold. The RSI is a momentum oscillator that measures the speed and change of price movements.
- While QNT’s daily chart RSI stood well above 70 as of writing, bitcoin’s RSI was directionless below 50.00. Retail traders often misread an overbought RSI as a sign of an impending bearish reversal. However, that’s not necessarily the case. An above-70 or overbought reading indicates the asset has moved too high too quickly and there could be a temporary bull breather.
- QNT’s rally is backed by an increased accumulation of coins by address owning 100 QNT and 1,000 QNT, dubbed whales by blockchain analytics firm Santiment. The number of QNT held by the whale addresses has increased from 1.47 million to nearly 1.7 million in four months.
- The sentiment is quite bullish on Crypto Twitter, with some handles saying the token is still cheap. While it’s difficult to pinpoint the exact catalyst for the bullish trend, circumstantial evidence suggests that the launch of “tokenize” at the end of June likely galvanized investor interest in the cryptocurrency. Tokenise allows users to create and deploy interoperable QRC-20 tokens (Ethereum standard counterpart) and digital assets onto mainnets.
- Further, On Aug. 22, Quant Network announced a non-fungible tokens (NFT) standard called QRC-721 to help users build and deploy secure, interoperable NFTs and overcome limitations associated with Ethereum’s ERC-721. According to Martin Hargreaves, Quant’s chief product officer, the ERC-721 tokens lack interoperability and have been subject to hacks.
“Mad Money” host, Jim Cramer, once famously said, “There’s always a bull market somewhere,” and this is exactly the case with Quant Network’s QNY token. However, it may be the end of the rally for the token because Quant Network’s daily active addresses (DAA) reached an all-time high of 10,949, up from around 5,850 four months ago, data from Santiment shows. However, the DAA readings dropped sharply in the past two days, reaching nearly 6,800 on Oct. 19. Simultaneously, QNT’s price fell by 25.5% to $171 in the same period, suggesting that many traders have been securing their profits.
News continues after this ad