- QNT is consolidating within a falling wedge, with technical indicators signaling potential upward movement.
- Despite the bullish sentiment, rising foreign exchange reserves could create selling pressure and limit upside.
Quantitative [QNT] has been stuck in a falling wedge pattern since mid-March, with the price hovering between $60 and $70 for months. However, the recent consolidation around $64.2 indicates that a breakout is imminent.
The sentiment of both the public and the smart money is turning bullish, which begs the question: can QNT break out of its downtrend and rise to higher resistance levels?
QNT’s Falling Wedge: Is There a Reversal on the Horizon?
The falling wedge is a common bullish reversal pattern, and with QNT consolidating around $63.6 at the time of writing, the market is watching closely for a potential breakout.
A breakout above the key resistance levels around $70 could open the door for a rally towards $120.
However, this will depend on whether Quant can muster enough buying pressure to break out of the wedge and move higher. Moreover, the narrowing range signals a tightening of prices, which historically precedes significant moves.
Source: TradingView
Bollinger Bands and RSI: Is Momentum Building?
The technical indicators provide further insight into Quant’s situation. The Bollinger Bands are tightening and showing reduced volatility, while the Relative Strength Index (RSI) stands at 42.67, just above oversold territory.
The RSI therefore suggests that there is still room for potential upward movement. Historically, a breakout often follows when these two indicators align. Traders should be careful, however, as false breakouts can occur without sufficient volume and momentum.
Source: TradingView
Foreign exchange reserves: is selling pressure increasing?
Data from the chain shows a slight increase in foreign exchange reserves, which increased by 0.22% to 1.5487 million Quants in the last 24 hours. An increase in currency reserves often indicates growing selling pressure as more tokens are moved onto exchanges.
Therefore, this could limit the potential short-term upside as sales increase. Furthermore, QNT must overcome this selling pressure to maintain its bullish trajectory.
Source: CryptoQuant
Liquidations: market stability or risk?
Liquidation data shows minimal long liquidation activity, with only $2.91K of longs liquidated. Consequently, the market remains relatively stable, with low leverage, which reduces the risk of forced selling.
However, should QNT experience a sharp price movement, liquidations could rise quickly, potentially increasing volatility.
Source: Coinglass
Read Quants [QNT] Price forecast 2024–2025
Shall QNT break out?
With sentiment turning bullish and technical indicators pointing to a possible breakout, QNT appears to be positioned for a potential upside move.
However, rising foreign exchange reserves indicate that sellers could weigh in on any price rise. If QNT can clear the resistance levels and maintain momentum, it could test higher levels and potentially reach $120.