- QNT is consolidating in a descending wedge, with technical indicators signaling a potential move higher.
- Despite the bullish sentiment, the increase in foreign exchange reserves could introduce selling pressure and limit the upside.
Quant (QNT) has been stuck in a falling wedge pattern since mid-March, with its price limited to between $60 and $70 for months. However, recent consolidation near $64.2 indicates that a breakout may be imminent.
Public and smart money sentiment is turning bullish, raising the question: Can QNT break out of its downtrend and reach higher resistance levels?
QNT Falling Wedge: A Reversal on the Horizon?
The descending wedge is a common bullish reversal trend, and with QNT consolidating around $63.6 at press time, the market is closely watching a possible breakout.
A break above key resistance levels around $70 could open the door for a rally towards $120.
However, this will depend on whether Quant can muster enough buying pressure to break free from the wedge and push higher. Additionally, the narrowing range indicates price tightening, which historically precedes significant moves.
Source: TradingView
Bollinger Bands and RSI: is the dynamic taking shape?
Technical indicators offer additional insight into Quant’s situation. The Bollinger Bands are tightening, showing reduced volatility, while the Relative Strength Index (RSI) sits at 42.67, just above oversold territory.
Therefore, the RSI suggests that there is still room for potential upward movement. Historically, when these two indicators align, a breakout often follows. However, traders should be careful as false breakouts can occur without sufficient volume and momentum.
Source: TradingView
Foreign exchange reserves: is selling pressure increasing?
On-chain data reveals an uptick in foreign exchange reserves, up 0.22% to 1.5487 million Quant over the past 24 hours. An increase in exchange reserves often signals increasing selling pressure, as more tokens are moved to exchanges.
Therefore, this could limit near-term upside potential if sales intensify. Additionally, QNT must overcome this selling pressure to maintain its upward trajectory.
Source: CryptoQuant
Liquidations: market stability or risk?
Liquidation data shows that there has been minimal long liquidation activity, with only $2.91K longs liquidated. Therefore, the market remains relatively stable, with low leverage, reducing the risk of forced selling.
However, if QNT were to experience a large price swing, liquidations could increase quickly, potentially amplifying volatility.
Source: Coinglass
Read Quant (QNT) Price Prediction 2024-2025
Will QNT burst?
With sentiment turning bullish and technical indicators suggesting a possible breakout, QNT appears to be positioned for a potential upward move.
However, the increase in foreign exchange reserves indicates that sellers could weigh on any rise in prices. If QNT manages to break through the resistance levels and maintain its momentum, it could test higher levels, possibly reaching $120.
