A decline in an asset’s supply on exchanges is a bullish sign, as it often indicates fewer sell-offs. Likewise, if there is increased demand for a cryptocurrency asset, its supply on exchanges will decrease as the coins are being taken off the market.
A decrease in an asset’s exchange reserves often precipitates a rally in its price. However, the severe bearishness that plagued the market in 2022 made it impossible for the consistent decline in QNT’s supply on exchanges to culminate into a price rally. In fact, on a year-to-date basis, the alt’s value declined by 40%, data from CoinMarketCap revealed.According to Santiment, QNT spent most of the year being trailed by negative investors’ sentiment.
Towards the end of June, QNT sellers suffered exhaustion, and this put the bulls in control of the market. A surge in QNT accumulation led to a rebound in its price, causing the token to exchange hands at a high of $208 by 18 October. As the price rebounded, investors’ sentiment flipped from negative to positive between September and mid-October.
Unable to sustain a further price rally, the bulls were overpowered by the bears, who returned to initiate a price drawdown. Closing the year at $106.96 per QNT token, the alt’s value dropped by 48% between October and December. As expected, sentiment changed and since remained negative.When QNT’s price began an uptrend in June, its MVRV ratio also turned positive. This meant that many QNT holders saw double the profits from their various investments.
In the 12-month trading period, QNT’s MVRV returned negative values for only two months. This placed QNT as one of the most profitable crypto investments this year.Subscribe to get it daily in your inbox.