Quant [QNT] jumps 28% in 7 days, nears 3-month high: What now?

• QNT has gained 28% in seven days, with the price now approaching a three-month high.
• Exchange netflow data showed that fewer traders were interested in selling despite the rally. 

The cryptocurrency market traded lower on Friday, as Bitcoin [BTC] struggled to hold levels above $58,000. Despite the downtrend, Quant [QNT] registered gains of over 5% gain to trade at $75 at press time.

This is its highest price in nearly three months. 

Quant has also been one of the top market performers over the past week, with its seven-day gains at 28% at press time. 

However, given the uncertainty across the broader market, will QNT’s rally progress? 

On-chain data is positive 

On-chain data suggested further tailwinds for Quant price. Traders have been withdrawing QNT from exchanges at a higher rate than they have been depositing, as seen on CryptoQuant.

Source: CryptoQuant

Since the 7th of September, QNT’s net outflows from exchanges have surpassed 30,000 tokens, which relieved the near-term selling pressure. This also supported the continuation of the uptrend. 

The derivatives market also indicated that traders were maintaining their positions on QNT. At press time, Open Interest had increased by 12% to $12 million. 

The OI was trading at the highest level since June. Given that Funding Rates had flipped positive at the time of writing, it showed that a majority of Futures traders have opened long positions on QNT.

Source: Coinglass

Are traders still buying into the rally? 

The current trend is showing that the bullish momentum could be waning. The Chaikin Money Flow was positive, which indicated that buyers were still dominating the market. 

However, the movement of the CMF line showed a possible shift in momentum. The line was tipping south, suggesting that buyers were exiting the market.

Source: TradingView

QNT’s rally was contingent on buying activity, given the prevailing bearish sentiment in the broader market. Therefore, if buying pressure falters, the uptrend could weaken. 

The volume profile data further proved the case of a cooling rally. Buyers were saturated at the $71-$73 price range, which explained the recent surge in price.

However, QNT crossed $75, fewer traders were willing to buy. Volumes were also significantly low at $77, which served as a critical resistance level. 

Read Quant’s [QNT] Price Prediction 2024–2025

A strong uptrend will likely resume if QNT pushes above $90, given that this price previously attracted buying volumes. 

Data from IntoTheBlock showed that a majority of QNT traders were sitting in losses at press time. These traders might choose to sell to minimize risk. Doing so will further weaken the uptrend and trigger a bearish reversal.

Source: IntotheBlock