Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: QUBIC trades below all key moving averages (7-day SMA: $0.000000745 vs. current $0.000000705), with RSI-14 at 34.91 (near oversold). The MACD histogram shows weak bullish momentum (+0.000000010532), failing to offset broader bearish structure.
What this means: Traders interpret sustained prices below EMAs/SMAs as a “death cross” precursor, triggering stop-losses. The lack of volume-backed recovery (24h volume: $1.59M, +36% but still low for its $91M market cap) reinforces downside risks.
Watch: A close above the 7-day SMA ($0.000000745) could signal short-term relief.
2. Miner Incentives & Supply Dynamics (Bearish Impact)
Overview: QUBIC’s mining model directs 50% of Monero mining rewards to buybacks/burns and 50% to miner payouts (Qubic). With mining profitability 3x higher than Monero (July 31 report), miners may sell QUBIC rewards for stablecoins, increasing sell-side pressure.
What this means: The circulating supply (129.48T QUBIC) creates high inflationary risk if miner selling outpaces buybacks. Recent halvings (August 2025) reduced emissions but haven’t countered broader dilution concerns.
3. Market-Wide Risk-Off Shift (Bearish Impact)
Overview: Bitcoin dominance rose to 58.42% (up 0.3% in 24h), signaling capital rotation away from altcoins. QUBIC’s 24h decline (-4.59%) outpaced the crypto market (-1.78%) and major AI tokens like TAO (-2.1%), reflecting weaker relative demand.
What this means: Investors favor liquidity and safety (BTC/ETH) amid macroeconomic uncertainty (Fed rate cut delays). QUBIC’s low turnover ratio (1.74%) indicates thin liquidity, amplifying volatility.
Conclusion
QUBIC’s drop stems from technical breakdowns, miner-driven supply inflation, and a hostile altcoin environment. While its Solana bridge announcement (Avicenne) hints at future utility, sentiment remains tethered to broader market forces. Key watch: Monitor Bitcoin dominance and QUBIC’s buyback burn rate for reversal signals.