Quant (QNT) has dominated the headlines with an impressive 28% surge in its price over the last 24 hours, reaching $83.76 at the time of reporting.
This surge was accompanied by a significant 523% spike in trading volume, propelling its market capitalization above $1.01 billion. While the broader cryptocurrency markets displayed mixed signals, QNT exhibited a strong uptrend.
Now, the key question on investors’ minds is whether this breakout signals the start of a sustained bullish run for QNT.
Quant’s Rally Drivers Under the Microscope
The breakout of QNT from a long-standing descending wedge pattern hinted at a possible shift in market sentiment.
Historically, such breakouts have often signaled the beginning of bullish trends, a narrative that QNT seemed to be aligning with. However, a critical resistance level at $103.20 posed a significant barrier.
Surpassing this level could trigger increased buying pressure, while a rejection might lead to a retest of lower support levels around the $70 mark.
Looking at technical indicators, the stochastic RSI stood at 85.63, firmly in the overbought territory, indicating robust buying momentum but also implying the potential for short-term corrections.
Additionally, the bullish momentum was confirmed by the moving average (MA) crossover at $69.50 and $63.80, with the short-term MA (9-day) crossing above the long-term MA (21-day).
While these signals point towards strengthening momentum, it’s essential to exercise caution following such rapid price appreciations.
QNT Exchange Reserves: A Telling Bullish Indicator
The reserves on exchanges witnessed a 2.27% decline in the last 24 hours, settling at 1.5357 million tokens by the time of reporting. A decrease in available tokens on exchanges often signals diminished selling pressure and a growing investor confidence.
With a limited QNT supply for immediate selling, the potential for an upward price movement gains traction, assuming the demand remains steady.
Growing Confidence Evident in On-Chain Signals
On-chain metrics further underscored QNT’s favorable position. Notably, significant transactions surged by 8.90%, while the net network growth increased by 0.62%, indicating heightened adoption and activity among major holders.
Moreover, 1.42% of QNT wallets were now showing a profit, signaling increased profitability. While there was a slight decrease (-0.23%) in concentration among the top holders, the overall sentiment remained optimistic.
Can QNT Sustain its Bullish Trajectory?
Quant’s breakout beyond its descending wedge, backed by a 28% surge in price and a substantial spike in trading volume, indicated a strong bullish momentum.
Yet, the hurdle at $103.20 posed a critical challenge. A successful breach of this level in the upcoming days could confirm a broader bullish reversal and potentially trigger further uptrends.