Quant (QNT) challenges important resistance - Will a breakout occur?

The surge of Quant (QNT) in the past 24 hours continues to draw attention from the market, as the investor sentiment index on the chart soared to an impressive level of 88%.

At the time of recording, QNT surged by 14% — the strongest increase among cryptocurrency assets for the day, while most of the market struggled to achieve double-digit gains.

The key issue at this moment is whether the new influx of capital is strong enough to help QNT maintain the psychological level of 100 USD, as is being reflected on the chart.

Why is QNT increasing in price?

The most convincing evidence for the recent rise of QNT comes from the strong consensus between two groups of investors in the spot and derivatives markets.

In the spot market, the bottom-fishing cash flow has clearly returned as investors have accumulated approximately $248,000 worth of QNT, right after two days of sell-offs that created downward pressure. This net buying move — a quick reversal from the previous trend — reflects the increasingly reinforced confidence in the current price range.

Source: CoinGlassEqually vibrant, the derivatives market also records active participation from traders. Open contracts (OI) soared to nearly 18 million USD, with an additional 1.5 million USD added in the last 24 hours alone. In the context of the Funding rate maintaining in the positive zone, this development indicates that most investors are betting on the scenario where QNT continues to expand its upward momentum.

At the time of recording, QNT was trading around the 93 USD mark, approaching the psychological threshold of 100 USD. However, some other psychological indicators are still signaling caution, indicating that the ability to conquer this price level may not be easy.

QNT hits a large supply zone

The supply zone in front is still the biggest barrier holding back the rise of QNT.

Essentially, the supply zone is an area where a dense concentration of unfilled sell orders exists. When the price enters here, the profit-taking pressure often increases significantly, triggering a wave of selling and pushing the price to reverse and correct.

On the chart, the supply zone of 93.32–99.13 USD has rejected QNT's breakout attempts twice: the first time causing a price drop of 27.73%, while the second time also triggered a decline of 27.06%. If this scenario repeats, QNT risks continuing to lose an average of about 27.3%, retreating to the support area around the 70 USD mark.

Source: TradingViewHowever, the door to the bull market has not closed. A decisive breakout above the supply zone will open up three important targets of 104 USD, 113 USD, and the highest peak near 121 USD on the chart.

At the current time, the market is converging with mixed signals: it has both ignited hope for a new growth cycle and issued a warning that investors need to maintain caution.

Capital inflows are increasing, but caution is still present.

The capital flowing into the market has increased significantly in the past 24 hours, as the Money Flow Index (MFI) continues to maintain its upward trend. The MFI surpassing the 50 threshold and trending upwards indicates that new capital is flowing strongly into the market, while also confirming that buying power is quite active.

However, the picture is not entirely optimistic as conflicting signals emerge from the Accumulation/Distribution indicator (A/D). Data shows that investors are tending to distribute tokens, with the volume decreasing to 970,000.

Source: TradingViewAlthough the technical signals are showing contradictions, the current distribution pressure is likely reflecting profit-taking activity rather than triggering a strong sell-off wave. Nevertheless, in the scenario where both the Distribution index and MFI weaken simultaneously, QNT may face the risk of a deep decline, putting many investors in a losing position.

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