Latest Subsquid (SQD) Price Analysis

Deep Dive

1. Revenue Pools Launch (Bullish Impact)

Overview: On December 31, 2025, Subsquid launched Revenue Pools – a system where SQD holders can lock tokens to earn shares of enterprise customer payments (e.g., from Deutsche Telekom) in stablecoins.
What this means: This creates direct utility-driven demand, temporarily reduces circulating supply through token locks, and shifts rewards from token inflation to real revenue. The 17.7% volume surge confirms market reaction to this fundamental shift in tokenomics.

2. Technical Rebound (Mixed Impact)

Overview: SQD's RSI (14) at 53.48 indicates recovery from oversold territory after a 7-day dip. The MACD histogram (-0.000815) shows waning bearish momentum despite a bearish crossover.
What this means: The price rise aligns with technical signals suggesting local bottom formation. The 24h volume increase to $6.72M supports this reversal, though sustainability requires holding above the 7-day SMA ($0.0743).

3. AI Narrative Momentum (Bullish Impact)

Overview: SQD continues riding the AI infrastructure wave, recently highlighted in HTX's market recap as a top AI performer (+114% in late December).
What this means: As a decentralized data layer for AI systems, SQD benefits from sustained institutional interest in AI-blockchain convergence. This narrative drove outsized gains in related tokens like PAYAI (+103%), creating spillover demand.

Conclusion

SQD's 24h gain combines substantive utility improvements (Revenue Pools) with technical and narrative tailwinds. While the Revenue Pools mechanism could create lasting supply pressure, monitor whether locked token quantities materially reduce the 975M circulating supply.
Key watch: Will enterprise adoption of Revenue Pools accelerate, potentially amplifying the supply reduction effect?

Deep Dive

1. Market-Wide Pressure (Bearish Impact)

Overview: The entire crypto market fell 2.74% in 24h, with Bitcoin dominance rising to 59.08% (up 0.15% daily). This signals capital rotation from altcoins like SQD into Bitcoin amid neutral market sentiment (Fear & Greed Index: 45).
What this means: SQD’s underperformance (-7.20% vs. market -2.74%) reflects its higher sensitivity to risk-off flows during market dips. Historical data shows altcoins like SQD typically lose more value than Bitcoin during broad sell-offs due to lower liquidity and higher speculative positioning.

2. Technical Correction (Bearish Impact)

Overview: SQD’s RSI (14-day) at 51.46 suggests neutrality, but the MACD histogram (-0.00094147) confirms bearish momentum. The price broke below its 7-day SMA ($0.0739), a key support level.
What this means: After a 68.48% 30-day rally, traders are taking profits. The breakdown below the 7-day SMA triggered stop-losses, accelerating selling. Low turnover (0.0845) indicates thin order books, magnifying price swings.
What to look out for: A close above $0.0739 (7-day SMA) could signal reversal; sustained trading below may extend losses.

Conclusion

SQD’s drop stems from market-wide risk aversion and technical profit-taking after its 30-day surge.
Key watch: Will Bitcoin dominance hold above 59%, pressuring alts further, or will SQD stabilize above $0.070? Monitor spot volume for conviction shifts.