Quant (QNT) has recently displayed signs of bullish sentiment, but the market is still under pressure. Despite strong indications from both retail and institutional investors, the question remains: is now the right time to jump into QNT?
As of now, QNT is trading at approximately $65.05, reflecting a 2.39% decline. Despite this downturn, sentiment analysis reveals optimism. Data from Market Prophit indicates a crowd sentiment score of 2.07, suggesting that the market is leaning toward a positive outlook. Smart money sentiment, on the other hand, stands at 0.86, indicating that institutional investors are also showing some confidence in QNT’s potential.
While this bullish sentiment could suggest a forthcoming price reversal, it’s essential to evaluate whether it’s sufficient to counter the prevailing downward trend.
Quant’s price has been on a downward trajectory since it failed to breach the $80 resistance level in September. Currently, QNT is hovering near a critical support zone at $61.80, represented by the lower Bollinger Band. The Stochastic RSI shows oversold conditions, marked by a reading of 10.71, which typically indicates that an asset is due for a price correction.
However, the bearish momentum remains prevalent, suggesting that sellers continue to dominate the market. For QNT to establish a bullish reversal, it must hold the support level at $61.80. A breach below this level could trigger increased selling pressure and further declines.
Examining the flow of QNT on exchanges reveals a slight decrease in exchange reserves, with 1.54 million tokens currently held on exchanges—a 0.21% drop in the last 24 hours. This reduction might indicate waning selling pressure, as fewer tokens are being moved to exchanges.
However, this trend requires close monitoring. If exchange reserves start to rise again, it could signal renewed selling activity, negating the current relief. While the decline in reserves offers some hope, it remains uncertain whether it will be enough to reverse the ongoing downtrend.
Open Interest Analysis: Is Confidence Dwindling?
Quant’s open interest has also seen a decline, dropping by 7.39% to settle at $8.49 million. This decrease may suggest a lack of market confidence, as traders are closing their positions rather than opening new ones. A continued decline in open interest could amplify bearish sentiment, making it difficult for QNT to mount a recovery.
Conversely, if open interest stabilizes, it could provide the groundwork for more significant price movements in the future.
The OI-weighted funding rate is currently slightly positive at 0.0098%, indicating that some long positions are being maintained. While this is a sign of optimism, it is not robust enough to suggest a definitive shift in market sentiment. Thus, while long traders remain hopeful for a price surge, the overall momentum may not be sufficient to drive significant gains in the short term.
Despite the bullish sentiment emanating from both retail and institutional investors, Quant’s technical indicators and on-chain metrics suggest that caution is warranted. The declining open interest and ongoing price pressures indicate that this optimism has not yet translated into robust price action.
While QNT possesses potential for recovery, it may require additional technical confirmations before any significant breakout occurs on the charts. Investors should remain vigilant, keeping a close eye on key support and resistance levels, as well as market sentiment, to make informed decisions about entering or exiting positions in QNT.
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