In the ever-evolving world of cryptocurrency, Quant (QNT) has caught the spotlight by surging 19.5% in just 24 hours, defying a longer-term bearish trend. With a market cap of $1.06 billion and trading volumes up by 150% to $61 million, this rally has intrigued investors. Let’s dive into what’s driving the sudden gains and what could be next for Quant.
What Triggered QNT’s Recent Rally?
The jump above $75 was largely driven by liquidity factors and technical price behavior. After several months of a downtrend—starting in early August—QNT dipped below this key support level, triggering a burst of buying activity. This explosive movement suggests the start of a potential uptrend, although technical indicators still reflect bearish momentum.
On the one-day chart, bearish moving averages raised a red flag, while the On-Balance Volume (OBV) indicated little accumulation of assets. However, the 78.6% Fibonacci retracement level at $75 was a critical support, and QNT’s rebound from this zone fueled optimism for a sustained recovery.
Technical Insights: Is Recovery Sustainable?
Despite the recent rally, QNT’s price action remains uncertain. Looking back to the bullish impulse move from $58.6 to $135.6 in April, there’s hope that the current price action reflects the start of a new wave of growth. If QNT sustains its upward momentum, the $110 level is being eyed as the next major target, especially with overhead liquidity near $87-$90 acting as a strong magnet.
However, a drop below $70 would invalidate the recovery theory and signal the continuation of a bearish market structure.
Market Activity and Factors to Watch
The rally was significantly influenced by liquidity sweeps. In late October, QNT traded around $80, accumulating liquidation levels on both ends. When the price dropped below the $74-$76 range in early November, it triggered long liquidations, paving the way for the upward movement toward the $87-$90 liquidity zone—a key area to monitor in the coming sessions.
Should You Invest in Quant?
While Quant’s recent performance may seem promising, market participants should exercise caution. The cryptocurrency market is highly volatile, and QNT’s longer-term indicators hint at lingering downward pressure. Ensure you perform thorough research and consult with a financial advisor before making investment decisions.
Enhance Your Crypto Analysis Tools
If you’re interested in crypto trading and analysis, consider the TradingView Pro Plan. This platform offers advanced charting tools and data-driven insights to help you make informed decisions, whether you’re tracking Quant or any other cryptocurrency.
