Analyst points to a big rise in this cryptocurrency this week

Quant (QNT) cryptocurrency, which acts as the native token of a blockchain platform focused on improving network interoperability, is showing clear signs of a possible rally.

According to analyst Manish Chhetri, the price of Quant recently broke out of a falling wedge pattern, which indicates a bullish trend for the asset.

“The breakout of this pattern, which has been connecting multiple highs and lows since mid-April, signals a bullish outlook ahead for QNT,” Chhetri noted.

Earlier this week, the QNT cryptocurrency saw a 2% surge, trading at $70.5 on Monday. According to the analyst, if the support level at $67.4 holds, the token’s price could surge by 20% to reach the weekly resistance at $85.2. Furthermore, Chhetri also noted that technical indicators reinforce this trend.

According to him, the Relative Strength Index (RSI) has crossed the neutral level of 50, and the Awesome Oscillator (AO) is about to cross the zero line. Thus, both suggest a continuation of the bullish momentum.

Quant Cryptocurrency

In addition to technical signals, on-chain data also shows a bullish outlook for Quant. According to Coinglass, open interest (OI) for QNT futures on exchanges increased from $6.63 million on Sunday to $14.06 million on Monday, the highest level since June.

“The rise in OI indicates that there is more new money coming into the market, which is a good sign for the rally to continue,” Chhetri said.

Another important piece of data is the increase in QNT’s daily active addresses, which jumped from 531 to 2,763 between Thursday and Friday. This is the highest level since November 2022.

“This shows that demand for Quant’s blockchain network is growing rapidly, which could further boost the token’s price,” the analyst said.

Chhetri also highlighted the drop in token balances on exchanges, a sign that investors are preferring to store their tokens in their own wallets, rather than keeping them on exchanges, which generally indicates less selling pressure.

According to the analyst, from September 1 to 2, the Exchange Flow balance dropped significantly, suggesting increased investor confidence. The total supply of QNT on exchanges also fell by 5.38% in the same period, indicating that investors are less inclined to sell.

However, Chhetri warned that if the QNT price closes below $56.8, the low recorded on September 7, the scenario could change to negative, with a possible drop of up to 12% to retest the low of $50.00, recorded in August.

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