Quant [QNT] has showcased remarkable performance compared to most digital assets in the past 24 hours, with a notable 7.5% increase. This surge arrives amid growing intrigue surrounding the token, as trading volumes have surged by over 200% according to the latest data from CoinMarketCap.
At the time of reporting, QNT was valued at $70.95, marking its highest price in almost a fortnight. What factors are driving the upward momentum of QNT crypto amidst a predominantly bearish market sentiment?
Increasing Bullish Momentum
The recent rally in QNT can be attributed to a surge in buying interest. The Relative Strength Index (RSI) has reached 61, signaling a bullish trend. Furthermore, despite the uptick in buyers, QNT has not entered the overbought territory, hinting at further potential for growth.
A notable upward shift can be observed in the RSI line, crossing above the signal line, indicating stronger buying pressures compared to selling pressures. Additionally, the Directional Movement Index (DMI) confirms the strength of the uptrend, with the +DI surpassing the -DI. Traders may interpret this crossover as a bullish signal, anticipating a continued price surge.
QNT is approaching a crucial hurdle at $72, representing the 100% Fibonacci level. This price level has historically posed as a formidable resistance point, with previous rallies halting when QNT approaches it.
Despite this, the current influx of buyers raises the possibility of a breakout. Should QNT surpass this resistance, the next target lies at $85, corresponding to the 1.618 Fibonacci level. Additionally, the derivatives market indicates a heightened interest in QNT crypto, exemplified by a significant spike in Open Interest to a multi-month peak of $14 million.
Validating the Rally Through On-Chain Metrics
On-chain data further supports the optimistic outlook for QNT. According to CryptoQuant, exchange reserves have notably dwindled to levels last witnessed in mid-July.
This decline typically signifies a reduction in available QNT tokens for sale on exchanges. The diminishing exchange reserves amid escalating demand fortify the bullish narrative. Furthermore, activity on the Quant network is on the upswing, with data from Santiment indicating that daily active addresses have surged to their highest point in over a year, underscoring the network’s expansion and adoption.
As more favorable indications surface, the QNT long/short ratio has incrementally risen from below 1 to 1.06 at present, suggesting a slight uptick in long positions. However, the ratio still denotes a balanced market sentiment.