Quant (QNT) has recently captured the market's attention with a notable 14% price surge, outperforming many other assets. This impressive rally has ignited discussions about whether the cryptocurrency can sustain its momentum and decisively breach the critical $100 price mark.
Behind QNT's Recent Surge
The primary catalyst for QNT's uptrend appears to be a strong convergence of activity from both spot and derivative investors. In the spot market, significant buying pressure emerged, with investors acquiring $248,000 worth of QNT after a period of sell-offs, signaling renewed confidence. Concurrently, the derivatives market saw a substantial increase in Open Interest (OI) to approximately $18 million, bolstered by $1.5 million added in the last 24 hours. A positive Funding Rate accompanying this rise suggests that derivative traders are overwhelmingly positioning themselves for further upward price movement.
The Critical $100 Hurdle and Conflicting Signals
Despite the bullish sentiment, QNT faces a formidable challenge in a major supply zone identified between $93.32 and $99.13. This area, historically laden with unfilled sell orders, has twice rejected QNT's price, leading to significant declines of around 27% on both occasions. Breaking through this zone is crucial; failure could see the asset retreat towards the $70 mark. Conversely, a successful breach could pave the way for targets at $104, $113, and potentially $121. Adding to the complexity, various sentiment indicators present a mixed picture. While the Money Flow Index (MFI) shows an upward trend above 50, indicating fresh capital inflow and active buying, the Accumulation/Distribution (A/D) indicator suggests that some investors are taking profits. This distribution is currently interpreted as profit-taking rather than a broad sell-off. However, if both the MFI and A/D begin to decline simultaneously, it could signal a significant downside risk for QNT. Ultimately, while capital inflows and investor alignment have fueled the recent rally, the persistent supply zone and cautionary distribution signals present ongoing obstacles to sustained upward momentum.
