Quantum Token (QNT) recently made a significant breakthrough by surpassing a prolonged downward trend on its weekly chart, sparking enthusiasm among traders and analysts. This breakout indicated a potential reversal of its extended bearish trajectory, with QNT trading at $88.76 at the time of writing, showing a 0.81% increase over the past 24 hours.
However, the key question now is whether QNT can maintain this positive momentum and reach new highs in the market?
Technical Analysis Indicates Optimistic Price Targets
The breakout of QNT from its descending channel represented a notable shift in market sentiment. This technical development suggested that the cryptocurrency could potentially target its initial resistance level at $136.2.
If the uptrend continues to gain strength, QNT could potentially surge towards a crucial level at $229, offering considerable upside potential for investors.
Furthermore, the Moving Average (MA) Cross revealed a growing bullish momentum, with the 9-week MA standing at $70.1 crossing above the 21-week MA at $69.3. Such a convergence typically signals an upward price trend.
Additionally, the MACD indicator supported this positive outlook as the histogram turned positive, indicating a strong bullish momentum with a reading of 3.1 at the time of reporting. These combined technical signals suggested a possible rally towards the key price levels of $136.2 and $229 in the short term.
Encouraging On-Chain Metrics Support Bullish Sentiment
On-chain data offered further reasons for optimism. The Net Network Growth metric surged by 0.66%, indicating an increase in new users and activity within the Quant network. Additionally, the “In the Money” metric highlighted that 2.11% of QNT holders were currently in a profitable position, reflecting positive investor sentiment.
Moreover, there was a notable 15.86% rise in large transactions, suggesting heightened participation from high net-worth individuals or institutional players. Despite some minor bearish influence from concentrated large holders, the overall on-chain data tilted strongly towards bullish activities.
In simple terms, QNT’s on-chain performance aligned well with its positive technical breakout trajectory.
Decreasing Exchange Reserves Signal Less Selling Pressure
Quantum Token’s decreasing exchange reserves pointed towards a total of 1.526 million units at the time of writing, following a 0.07% decline in the last 24 hours.
A drop in exchange reserves typically indicates reduced selling pressure as investors tend to move assets to long-term storage. This trend could lead to a supply shortage, further supporting an upward price movement for QNT.
With QNT’s breakout from its descending trendline, coupled with favorable technical indicators and robust on-chain metrics, the cryptocurrency appears set for potential further appreciation in value.
If it successfully surpasses the $136 resistance level, a path towards $229 becomes increasingly likely. As such, all signs point towards Quantum Token entering a potentially significant bullish phase, positioning it as a cryptocurrency of interest for the near future.