Quant [QNT] has caught the market’s attention with a significant 10% surge in the last 24 hours, reaching $117. Trading volumes spiked by over 50%, hitting $30 million, while its market capitalization rose to $1.41 billion. This resurgence comes as institutional investors, or “smart money,” signal bullish intent, even as retail sentiment remains cautious. Amid this optimism, Quant’s technical setup hints at the possibility of further gains, with a potential target of $128. However, will this rally sustain, or are there challenges ahead?

Bullish Momentum: What’s Driving QNT’s Price?

Quant’s recent price movement aligns with a bullish “W” pattern visible on its four-hour chart. This pattern, often considered a precursor to an uptrend, suggests that QNT could see additional upward momentum.

The token has already breached the neckline of this pattern with strong trading volumes, a positive sign of continued buyer interest. However, it now faces a key resistance at $119, which could determine whether QNT can rally further or consolidate.

Key Indicators Supporting the Bullish Thesis

Several technical indicators lend credibility to Quant’s bullish outlook:

1. Relative Strength Index (RSI):The RSI stands at 62, indicating stronger buying pressure than selling. Its upward trajectory reflects growing market interest and hints at sustained bullish momentum.
2. Moving Average Convergence Divergence (MACD):A bullish crossover on the MACD line has further solidified positive sentiment. The narrowing of MACD histogram bars suggests that buyers are returning to the market, potentially pushing QNT toward its next resistance level.
3. Liquidation Heatmap:Analysis from Coinglass reveals significant liquidation activity near $120. If QNT reaches this level, it could trigger a short squeeze, where traders covering their short positions could fuel additional upward momentum.

Profitability Challenges: The MVRV Decline

Despite the optimism, Quant’s Market Value to Realized Value (MVRV) ratio paints a mixed picture. Over the past month, the MVRV has dropped from 2.81 to 1.92, signaling reduced profitability for QNT holders.

This decline means fewer wallets are currently in profit, dropping from 85% to 39%. While a lower MVRV suggests that QNT is not overvalued, it also raises the risk of increased selling pressure as investors seek to minimize potential losses.

Resistance and Support Levels to Watch

For QNT to maintain its bullish momentum, several critical levels come into play:

• Resistance at $119:This level marks a significant hurdle. A decisive break above it could pave the way for a rally toward $128.
• Magnet Zone at $120:The cluster of liquidations around this price point could act as a catalyst, triggering a short squeeze that propels QNT higher.
• Support at $110:Should the rally falter, this level could provide a safety net, preventing a deeper correction.

Can Quant Sustain its Momentum?

While Quant’s short-term outlook appears bullish, sustaining its momentum will require overcoming key challenges. Indicators like the RSI and MACD suggest strong buyer interest, but the resistance at $119 and the declining MVRV ratio could pose obstacles.

If QNT successfully flips the $119 level, it may well rally to $128, aligning with mid-December highs. However, failure to break through could result in consolidation or a pullback toward support at $110.

Investors should keep a close eye on trading volumes, liquidation clusters, and market sentiment to gauge Quant’s next move.

Conclusion

Quant [QNT] has demonstrated impressive resilience, with bullish signals suggesting a potential breakout. However, the road to $128 is not without its challenges. Whether it’s the declining profitability metrics or the looming resistance levels, QNT will need sustained buyer interest to realize its potential.

For now, the bullish momentum appears intact, but cautious optimism is warranted as the market navigates these pivotal levels.