As the last crypto week in July comes to an end, Quant Network continues to dazzle with incredible gains and record breaking volume. I reported earlier about the massive volume spike that finally broke QNT into the $100 range and now we are seeing another day of massive volume and a gain of nearly 30% as it sits at $174.
Over the past week the price of QNT has nearly doubled from the $80 range to nearly $200 as of Sunday night New York time. This rapid acceleration has caused market price to extend far beyond some key moving averages, which indicates either a looming correction or a period of extended sideways movement.
At time of writing the price of Quant is 38% extended past the 8 day moving average which currently sits at $125. Typically when market prices get too far extended from key moving averages it will correct and return to the mean.
There is a clear diagonal resistance dating back to May 2021 that runs from $33 to $55. When this line is projected into the present we see that the “mean” is currently somewhere between $60 and $80 which would be a correction of over 60% from current price.
One thing Quant holders can look for to gauge corrections is the volume. So far QNT has seen some extraordinary buy volume this week, breaking well above average levels on the hourly and daily time frames.
This massive amount of volume has pushed the Volume Weighted Average Price (VWAP) to $175 at the close on Sunday. VWAP is an important indicator that is used to determine a fair value based on volume rather than price increases alone.
Price tends to hang around VWAP so unless QNT bears start dumping with some convincing volume, any correction will most likely be weak and short lived. The second scenario for Quant would be cool down period to allow key daily moving averages some time to play catch up.
Once the market price and key averages close the percentage gap between them, the uptrend can resume in a healthy manner. As it stands now, the FOMO on Quant is strong and things are starting to get parabolic.
For Quant Network to see healthy growth, the market will need to consolidate. Buyers may find support at $138 and $100 as there has not been a true retest of these levels yet but bears should be cautious of trying to short QNT without convincing sell volume to back them up.