Quant [QNT] has shown better performance compared to most digital currencies in the past 24 hours, with a 7.5% increase. This surge in value coincides with a growing interest in the token, as trading volumes have risen by over 200% according to the latest CoinMarketCap data.
At the time of writing, QNT was trading at $70.95, marking its highest value in almost a fortnight. This raises the question: What is driving the increase in QNT crypto value amidst a generally pessimistic market sentiment?
Bullish Momentum on the Rise
The recent rally in QNT can be attributed to a surge in buying activity. With the Relative Strength Index (RSI) standing at 61, there is clear bullish momentum. Additionally, despite the influx of buyers, QNT is not yet in overbought territory, suggesting there is still room for further growth.
The RSI line has made a significant upward move, crossing above the signal line, indicating that buying pressure has outweighed selling pressure. This uptrend strength is further emphasized by the Directional Movement Index (DMI), where the +DI has surpassed the -DI. Traders could interpret this crossover as a signal to buy, with expectations of the price continuing to climb.
QNT is inching closer to a crucial barrier at $72, which also corresponds to the 100% Fibonacci level. Historically, this price point has served as a robust resistance level, causing previous rallies to stall when QNT nears it.
However, the increasing number of buyers entering the market hints at a potential breakout. Should QNT breach this resistance level, the next target would be $85, which aligns with the 1.618 Fibonacci level.
The derivatives market is also witnessing a rise in interest in QNT crypto, as evidenced by a sharp increase in Open Interest to levels not seen in months.
At present, QNT’s Open Interest stands at $14 million, indicating a more than twofold surge over a 24-hour period as reported by Coinglass.
On-chain Data Supports QNT Crypto Upward Trend
On-chain metrics further reinforce the optimistic outlook for QNT. Based on data from CryptoQuant, exchange reserves have dropped significantly to their lowest point since mid-July.
This decline often indicates a reduced availability of QNT tokens for sale on exchanges. Diminishing exchange reserves amidst growing demand strengthens the bullish narrative for QNT.
In addition, there has been a noticeable uptick in activity on the Quant network. Santiment’s data reveals that daily active addresses have surged to their highest level in over a year, signaling positive growth and adoption for the network.
As more positive indicators surface, the QNT long/short ratio has gradually risen from below 1 to 1.06, reflecting a slight uptick in long positions. Nonetheless, the ratio still suggests a balanced market sentiment.