Quant [QNT] Surges 28% in 7 Days, Approaching 3-Month High: What’s Next?

Amid a dip in the cryptocurrency market on Friday, Bitcoin [BTC] struggled to maintain levels above $58,000. Despite this, Quant [QNT] managed to secure gains of more than 5%, reaching $75 at the current moment.

This marks the highest value it has reached in almost three months.

Quant has emerged as one of the top performers in the market over the last week, with a seven-day surge of 28% as of now.

However, in light of the uncertainty prevailing in the broader market, the question arises: will the rally of QNT continue?

Positive On-Chain Data

On-chain data indicates further support for the price of Quant. There has been a notable increase in the withdrawal of QNT from exchanges compared to the depositing activity, as evidenced by data from CryptoQuant.

Since September 7th, net outflows of QNT from exchanges have exceeded 30,000 tokens, easing the immediate selling pressure. This has provided a boost to the ongoing uptrend.

The derivatives market also reveals that traders are holding onto their positions in QNT. Currently, the Open Interest has risen by 12% to $12 million.

This marks the highest OI level since June. The shift in Funding Rates to positive at the time of writing suggests that a majority of Futures traders have taken long positions on QNT.

Is the Rally Still Attracting Buyers?

The present trend points towards a potential slowdown in bullish momentum. While the Chaikin Money Flow remains positive, indicating buyer dominance, the movement of the CMF line hints at a possible momentum shift with buyers stepping back.

Given the prevailing bearish sentiment in the broader market, QNT’s rally heavily relies on buying activity. Any decrease in buying pressure could weaken the uptrend.

Volume profile data also supports the notion of a cooling rally. Buyers seem to be concentrated within the $71-$73 price range, explaining the recent surge in price.

Nevertheless, as QNT surpassed $75, there was a decrease in trader interest. Volumes remained notably low at $77, posing a significant resistance level.

A robust uptrend is anticipated if QNT manages to break above $90, a price point that has previously attracted substantial buying volumes.

Data from IntoTheBlock reveals that most QNT traders are currently facing losses. These traders may opt to sell in order to mitigate risks, further weakening the uptrend and potentially triggering a bearish reversal.