Quant (QNT) has been making headlines with a remarkable 28% rally in the past 24 hours, taking its price to $83.76 at the time of writing. This surge has captured the attention of both traders and investors, especially as QNT’s trading volume spiked by an incredible 523%. The increase in volume, combined with a market cap surpassing $1.01 billion, has fueled speculation that this could be the beginning of a larger bullish breakout for the token.

As the broader crypto market displays mixed trends, Quant’s price action has stood out, signaling potential for further gains. But with resistance levels ahead and the market’s volatility still in play, the question remains: is this just a temporary surge or the start of a sustained upward trajectory?

What’s Behind the Rally?

QNT’s breakout from a prolonged descending wedge pattern is a key factor contributing to its recent surge. In technical analysis, breakouts from such patterns often signal a shift in market sentiment, typically pointing to the beginning of a bullish trend. For Quant, this breakout could lead to further gains if the momentum continues.

However, a critical resistance level at $103.20 is now looming. This level has served as a barrier for QNT in the past, and breaking above it could ignite stronger buying pressure, potentially sending the token even higher. If QNT fails to break past this resistance, a retest of lower support levels near $70 could be possible.

Key Technical Indicators Point to Bullish Sentiment

Several technical indicators are reinforcing the bullish outlook for QNT. The stochastic RSI, currently at 85.63, is firmly in overbought territory, suggesting strong buying activity. While this is a positive sign, it also indicates that the token could experience short-term corrections before continuing its upward movement.

Additionally, the moving average (MA) cross at $69.50 and $63.80 has confirmed the bullish trend. The 9-day MA recently crossed above the 21-day MA, a classic signal of positive momentum. However, traders should remain cautious as such rapid gains can often be followed by periods of consolidation or price corrections.

Decreasing Exchange Reserves Signal Stronger Buying Pressure

Another positive sign for QNT is the decline in exchange reserves. Over the last 24 hours, the amount of QNT on exchanges decreased by 2.27%, standing at 1.5357 million tokens. Reduced reserves typically indicate lower selling pressure and higher investor confidence, as fewer tokens are available for immediate sale.

This drop in exchange reserves could be a bullish signal, as the token’s limited availability on exchanges may contribute to upward price movement, provided there is sufficient demand. As fewer tokens are available for sale, any increase in buying pressure could push QNT’s price higher.

On-Chain Metrics Reflect Growing Confidence

On-chain metrics provide further evidence of Quant’s strengthening position. Large transactions have surged by 8.90%, and net network growth has increased by 0.62%, signaling higher activity among major holders and growing adoption of the token. These metrics suggest that institutional and larger investors are becoming more involved with QNT, which is often a precursor to continued price appreciation.

Additionally, 1.42% of QNT wallets are now “in the money,” reflecting heightened profitability. While the concentration among top holders has decreased slightly (-0.23%), the overall sentiment remains largely bullish, with more wallets holding profitable positions.

Can QNT Maintain Its Bullish Momentum?

Quant’s breakout from its descending wedge, combined with a 28% surge in price and an explosive 523% increase in trading volume, points to strong bullish momentum. The decline in exchange reserves and positive on-chain metrics further support the idea that QNT is gaining traction in the market.

However, the resistance at $103.20 remains a key challenge. If QNT can push past this level, it could trigger a broader bullish reversal, leading to even higher price targets in the near future. If the resistance holds, there could be a temporary pullback or consolidation, but the overall trend still appears to be bullish for now.

For investors looking to capitalize on QNT’s momentum, the next few days will be crucial. Watching how the token behaves around the $103.20 resistance level will provide important clues about whether this breakout is sustainable or if a correction is in the cards.

Conclusion: A Bullish Breakout or Short-Term Surge?

Quant’s impressive 28% price increase is undeniably significant, and the technical and on-chain signals suggest that the token is in a strong position. The breakout from the descending wedge, combined with declining exchange reserves and increasing investor confidence, indicates that QNT could be on the cusp of a larger bullish trend.