The cryptocurrency market has turned red over the past 24 hours, with only a handful of altcoins remaining in green territory.
Among them is Quant (QNT), whose price soared by triple digits last week. Many analysts are predicting further gains in the near future, but one popular trader took a more cautious approach and cashed out his entire position. Find out why.
Not a comfortable environment?
Just a few hours ago, QNT exploded to a five-year high of around $370. The bears, however, have prevented further upside, and now the cryptocurrency is trading around $205 (per CoinGecko), representing a 260% weekly jump.
Perhaps the biggest catalyst for this uptrend is the announcement that The Clearing House (one of the largest payments operators in the United States) has chosen Quant to pilot its on-chain money initiative.
X user Ted pointed out additional factors that may have also had a positive impact on QNT. He revealed that Quant is now integrated into Murex MX.3 (the software that runs 65 of the world’s 100 largest banks), while the European Central Bank chose the project to help test the digital euro.
Despite the massive general optimism surrounding QNT, popular trader Doctor Profit selected to take profit on their entire position in the token. He acknowledged that the jump had been impressive, but noted that many people on X are “convincing themselves not to sell while urging everyone else to keep buying.” He also mentioned the high funding rate, which suggests saturated long positions.
“This is not an environment in which I feel comfortable. Especially since some major accounts have already started selling privately while 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 am happy with my decision”, concluded Doctor Profit.
The QNT Relative Strength Index supports the trader’s decision. The ratio climbed to nearly 100 before falling back to around 74, still in overbought territory and potentially signaling a near-term correction.
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X user Nehal also thinks it may be time for QNT to calm down, expecting a return to the $100-$150 area. From there, the analyst anticipates a new strong rally that could take the asset above $500, with potential for a new all-time high of $800 to $900.
For his part, UMER (THE BULL) claimed that “the QNT game is over”. He argued that the pump was driven by hype and not any solid reason, after “all the major influencers keep talking about it.” The analyst also said that comparing QNT with ZEC makes no sense, because “there is a world of distance between the two.”
The post Quant (QNT) Up 260% in a Week, But This Trader Just Sold Everything: Here’s Why appeared first on CryptoPotato.
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