CryptoQuant’s volatility-adjusted momentum drops below zero, signaling structural market weakness

CryptoQuant’s volatility-adjusted momentum indicator has crossed below zero, a threshold that historically marks the transition from tepid optimism to outright bearish territory. The on-chain analytics firm published the finding in a Quicktake report on August 17, flagging that its risk oscillator has simultaneously reverted to a level previously associated with major market turning points. What the indicators are actually saying Volatility-adjusted momentum measures price momentum relative to how volatile the asset has been, filtering out the noise that makes raw momentum readings unreliable in crypto. When this metric sits above zero, the market generally has enough directional energy to sustain trends. When it drops below, the implication is that whatever momentum existed has been consumed by volatility without producing meaningful gains. The risk oscillator adds a second layer. By reverting to a prior turning-point level, it suggests the market is sitting at a structural inflection, the kind of zone where prices have historically either found a floor or broken down further. With momentum already negative, the odds tilt toward the latter. CryptoQuant’s assessment is blunt: the m...