The price of Quant Network (QNT<\/a>) eyes a sharp reversal after an impressive 450% rally in the past four months.<\/p>\n QNT\u2019s downside outlook takes cues from a flurry of technical and on-chain indicators, all suggesting that investors who backed its price rally have likely reached the point of exhaustion.<\/p>\n Here are three reasons why it could be happening.<\/p>\n Interestingly, the period of QNT\u2019s massive uptrend<\/a> coincided with similar upticks in its number of daily active addresses (DAA). This metric represents the number of\u00a0unique addresses active on the network as a sender or receiver.<\/p>\n As of Oct. 17, the Quant Network\u2019s DAA reached<\/a> an all-time high of 10,949, up from around 5,850 four months ago, data from Santiment shows. Its upsurge during the QNT price uptrend shows traders were net buyers. <\/p>\n However, the DAA readings dropped sharply in the past two days, reaching nearly 6,800 on Oct. 19. Simultaneously, QNT\u2019s price fell by 25.5% to $171 in the same period, suggesting that many traders have been securing their profits.<\/p>\n The profit-taking in the Quant Network market comes as its daily relative strength index (RSI) crossed above 70 on Oct. 17, hinting that the asset is overbought.<\/p>\n An overbought RSI does not necessarily mean a strong bearish reversal, however. Instead, it shows that the price has moved upward too quickly and, thus, a correction is becoming increasingly likely before the uptrend could resume.<\/p>\n QNT\u2019s daily RSI corrected to 65 on Oct. 17. Simultaneously, the token\u2019s price dropped toward $185, coinciding with its 0.236 Fib line of the Fibonacci retracement graph shown in the chart below.<\/p>\n The $185-level was instrumental as support in August 2021. But, given the existing profit-taking sentiment, the level may not hold for long, which could result in an extended decline toward the $137-$150 support range.<\/p>\n The area falls between QNT\u2019s 0.382 and 0.5 Fib lines and further coincides with its 50-day exponential moving average (50-day EMA; the red wave in the chart above), creating a strong support confluence. Therefore, a break below $185 could have QNT bears eye $137, a 25% drop, as the ultimate downside target by the end of the month.<\/p>\n The period of Quant Network\u2019s 450% price rally heavily coincided with the increase in the number of addresses holding between 100 QNT and 1,000 QNT tokens, dubbed as \u201cwhales\u201d by Santiment.<\/p>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/a3bf8e3c-9b5c-418c-8927-c20d6a851d08.png\")
Quant’s daily active addresses drop<\/h2>\n
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QNT price downside target<\/h2>\n
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QNT whales diminish<\/h2>\n
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