Quantum (QNT) is edging closer to a crucial breakout, currently trading within a descending wedge pattern that hints at a possible bullish turnaround. The extended bearish trend seems ready to conclude, laying the groundwork for a potential surge in prices.
With the current price at $61.65, Quantum has experienced a 3.24% increase at the time of writing. The primary resistance level is positioned around $80.38, and breaching this level could indicate the beginning of a new bullish trend.
Moreover, the crowd sentiment at 0.29 and smart money sentiment at 0.86 illustrate an optimistic sentiment, indicating that market participants are expecting an upward movement. Consequently, the upcoming price action could be pivotal for Quantum’s future trajectory.
Crucial Technical Indicators: Bollinger Bands and RSI Strengthens Bullish Sentiment
An assessment of Quantum’s technical indicators provides additional support for a potential breakout scenario. The Bollinger Bands on the daily chart reveal that Quantum has been hovering close to the lower band.
This position typically indicates oversold conditions, often leading to a reversal as buyers enter the market.
Additionally, the Relative Strength Index (RSI) currently stands at 42, signifying that Quantum is emerging from oversold territory. A continued upward movement in RSI is likely to attract more buying interest, enhancing the chances of a breakout.
Both indicators point towards a market gearing up for upward momentum; however, overcoming resistance levels remains crucial.
Quantum’s Price and DAA Divergence: Does the Network Need a Boost?
Notably, Quantum’s price action exhibits a disparity with Daily Active Addresses (DAA), a critical on-chain metric. With a DAA divergence of -26.5%, the current network activity trails behind the recent price rise.
This divergence often indicates that while the price shows strength, the network activity must catch up to sustain a rally.
Thus, bridging the gap between DAA and price could enhance bullish momentum. Aligning price movements with DAA trends would establish a more solid foundation for Quantum’s potential breakout and diminish the risk of a short-lived surge.
On-chain Indicators: Varied Signals, Yet Surge in Large Transactions
An analysis of other on-chain signals presents a mixed outlook. Metrics like net network growth (+0.23%), in-the-money addresses (-0.12%), and concentration (-0.04%) suggest mild bearish tendencies.
Nevertheless, the notable increase of 7.22% in large transactions displays significant bullish interest, indicating that major holders are accumulating Quantum. This accumulation could lay the groundwork for a stable support base, potentially facilitating a more robust price movement if other metrics improve.
With crowd sentiment, smart money outlook, and technical indicators aligning to support an optimistic viewpoint, Quantum seems primed for a breakout.
A successful breach above $80.38 could spark a rally, renewing interest across the market. However, synchronizing on-chain activities with price gains will be crucial in sustaining any bullish trajectory.