Latest SubQuery Network (SQT) Price Analysis

Deep Dive

1. Post-Rally Correction (Bearish Impact)

Overview: SQT rallied 131% in 7 days leading to 17 January, likely driven by hype around its 21 August Blockops partnership (SubQuery). The 24h volume plummeted 41.8% to $1.05M, signaling fading momentum.

What this means: High volatility in low-liquidity altcoins often leads to violent corrections after parabolic moves. The 24h turnover ratio (0.412) confirms thin order books amplified the drop.

What to watch: Whether the 30-day SMA ($0.000379) holds as support. A breach could extend losses.

2. Technical Resistance (Mixed Impact)

Overview: The price rejected at the 200-day SMA ($0.000737), a key resistance level. The MACD histogram turned downward (+0.00005682) despite bullish crossover, suggesting weakening upside momentum.

What this means: Technical traders often interpret failed breakouts above long-term averages as sell signals. The RSI (65.42) also cooled from overbought territory, aligning with profit-taking.

3. Bitcoin Dominance Shift (Bearish Impact)

Overview: Bitcoin’s dominance rose to 58.92% (+0.15% in 24h), reflecting risk-off flows. The Altcoin Season Index fell 14.29% weekly to 24 (“Bitcoin Season”).

What this means: SQT’s drop coincided with capital rotation to BTC, a pattern seen in past cycles when BTC dominance accelerates. Projects with speculative recent gains (like SQT’s 131% weekly rise) are often first sold.

Conclusion

SQT’s plunge reflects a perfect storm of overheated technicals, Bitcoin’s dominance resurgence, and low liquidity exacerbating moves. Traders appear to be reallocating to safer assets after the coin’s unsustainable rally.

Key watch: Can SQT defend the $0.000379 support (30-day SMA)? A breakdown here might signal deeper correction ahead.

Deep Dive

1. Blockops Partnership (Bullish Impact)

Overview: SubQuery announced a collaboration with Blockops on 21 August 2025 to launch Pulsar, a managed service for multi-chain indexers (SubQuery). This reduces developer friction in deploying/maintaining Web3 data infrastructure.

What this means: Simplifying indexer operations could accelerate adoption across SubQuery’s 300+ supported chains, directly increasing demand for SQT tokens used to pay for network services. The timing aligns with the price rally, suggesting traders priced in scalability improvements.

What to look out for: Sustained developer activity metrics post-launch.

2. Overheated Technicals (Mixed Impact)

Overview: The 24h rally pushed SQT’s RSI14 to 94.29 (above 70 = overbought), while the MACD histogram shows bullish momentum at 0.00005184.

What this means: Extreme RSI levels often precede pullbacks, but the MACD divergence suggests short-term momentum could persist. Traders may interpret this as a “melt-up” phase, though a retest of the $0.00088 pivot point could act as support.

3. Speculative Volume Spike (Neutral Impact)

Overview: SQT’s 24h volume surged 1,115% to $1.78M, with turnover (volume/market cap) at 0.43 – indicating high liquidity relative to its size.

What this means: Retail traders likely amplified the move, as low-cap tokens like SQT ($4.13M market cap) are prone to volatility during news-driven pumps. The lack of major resistance until the $0.00148 Fibonacci extension level may have encouraged FOMO buying.

Conclusion

SQT’s surge combines bullish infrastructure developments with speculative trading dynamics, though overbought signals caution against chasing the rally. Key watch: Can SQT hold above the $0.00101 Fibonacci retracement level (23.6%) to sustain momentum?