The cryptocurrency market has flashed red over the past 24 hours, with only a handful of altcoins remaining in green territory.
Among them is Quant (QNT), whose price skyrocketed by triple digits in the last week. Many analysts anticipate additional gains in the near future, but one popular trader took a more cautious approach and cashed out his entire position. Check out why.
Not a Comfortable Environment?
Just a few hours ago, QNT exploded to a five-year high of approximately $370. The bears, though, prevented another leg up, and now the cryptocurrency trades around $205 (per CoinGecko), representing a 260% weekly jump.
Perhaps the main catalyst driving the uptrend is the announcement that The Clearing House (one of the largest payment operators in the US) selected Quant to power its On-Chain Money Initiative.
X user Ted outlined additional factors that may have also positively impacted QNT. He revealed that Quant is now built into Murex MX.3 (the software running 65 of the world’s 100 largest banks), while the European Central Bank picked the project to help test the digital euro.
Despite the massive overall optimism surrounding QNT, the popular trader Doctor Profit chose to take profit on his entire position in the token. He agreed that the jump has been impressive, but noted that plenty of people on X “convince themselves not to sell while urging everyone else to keep buying.” He also mentioned the high funding rate, which suggests crowded long positions.
“This is not an environment I feel comfortable in. Especially knowing some larger accounts have already started selling privately while still encouraging buying. I respect everyone’s decision, but I prefer to be transparent about mine. Even if I sold early and it goes higher, I’m happy with my decision,” Doctor Profit concluded.
QNT’s Relative Strength Index supports the trader’s decision. The ratio surged to almost 100 before retracing to around 74, still in overbought territory and potentially signaling a short-term correction.
More Opinions
X user Nehal also thinks it might be time for QNT to cool off, expecting a pullback to the $100-$150 zone. From there, the analyst anticipates a new strong rally that could take the asset above $500, with a potential for a new all-time high of $800-$900.
For his part, UMER (THE BULL) claimed that “QNT game is over.” He argued that the pump has been driven by hype and not a solid reason, after “every major influencer keeps talking about it.” The analyst also said that comparing QNT with ZEC makes no sense, as “there’s a world of distance between the two.”
Source: CryptoPotato
