Quant Rallies 20% Unexpectedly – Here’s Why a Price Correction Might Happen

Recent liquidity and the bounce from a long-term downtrend at the $75 support level contributed to a surprising 20% increase in Quant's (QNT) price.
Although some technical indicators suggest a bearish trend, price movements imply that a rise to $110 is a plausible expectation.
QNT has experienced a significant 19.5% price increase in the last 24 hours, yet it has maintained a bearish trend since early August.
The trading volume for QNT skyrocketed by 150%, reaching $61 million as the asset rebounded from below the $75 mark.

Key Takeaways

Recent liquidity and the bounce from a long-term downtrend at the $75 support level contributed to a surprising 20% increase in Quant's (QNT) price.
Although some technical indicators suggest a bearish trend, price movements imply that a rise to $110 is a plausible expectation.
QNT has experienced a significant 19.5% price increase in the last 24 hours, yet it has maintained a bearish trend since early August.
The trading volume for QNT skyrocketed by 150%, reaching $61 million as the asset rebounded from below the $75 mark.

QNT gains 20% against all odds - But here's why a reversal is coming

Understanding the Factors Behind the QNT Rally

QNT 1-day Chart Source: QNT/USDT on TradingView

Examining the 1-day chart for Quant reveals that despite the recent uptick, the overall trend and momentum remain bearish. The moving averages continue to show a bearish outlook, and the 50-day moving average may reject bullish attempts from QNT.

The On-Balance Volume (OBV) has not demonstrated an upward trend, indicating a lack of accumulation, which suggests that this positive movement may be short-lived. However, analyzing the price action offers a more optimistic perspective. The bullish surge that began in April from $58.6 to $135.6 has its 78.6% retracement level positioned at $75.

Earlier this week, QNT momentarily dipped below this crucial support level. This was followed by a strong rally, accompanied by an increase in trading volume, signaling the possibility that the bearish trend might be reversing, thus paving the way for an upcoming uptrend.

QNT Liquidation Heatmap Source: CoinGlass

Another vital aspect influencing the recent sharp increase in QNT's price is liquidity. During the latter half of October, amid a fearful market environment, QNT remained around the $80 range, accumulating liquidation levels in both directions.

A drop in price to the $74-$76 range triggered long liquidations at the beginning of November; once these were cleared, the focus shifted to the overhead liquidity between $87 and $90. This upper target is likely to be reached soon.

What’s next for Quant’s price? Should the bullish recovery narrative hold true, the next resistance level is the significant zone at $110. Conversely, if the price falls below $70, it would indicate that the downtrend is still in effect, potentially invalidating the bullish reversal theory.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. This represents the author's opinion.