Smart money turned on Quant after the token formed a double-decker pattern on its four-hour chart.
If buyers remain active, QNT could rise to $128.
QNT was trading at $117 at the time of writing, up 10% in 24 hours. Trading volumes were up 53% to $30M per CoinMarketCap, while the token’s market cap rose to $1.41 billion.
Amidst these gains, the smart money has turned bullish on QNT, per Prophit Market. This is despite the crowd or retail sentiment being bearish.
One factor that could fuel positive sentiment from experienced investors is a bullish outlook on the Quant low time frame chart.
QNT is preparing to rally to $128
The Quant four-hour chart showed that the altcoin has completed a W pattern, which often indicates an upcoming uptrend.
If buyers remain active, QNT could rise to $128.
The quantum is facing strong resistance at the second peak at $119. If it can reverse this level, Alcoin could be set to rally to mid-December levels after $128.
Source: TradingView
The Relative Strength Index (RSI) confirmed this bullish thesis with a value of 62, indicating that buying pressure was higher than selling pressure at press time.
This indicator was also trending upward, indicating rising buyer interest.
The Moving Average Convergence (MACD) line also formed a bullish crossover after the positive flip.
The short MACD histogram bars also confirmed that buyers were re-entering the market, which could help break the previous resistance of $128.
Is low MVRV good for the price?
The market value to realized value (MVRV) ratio has seen a sharp decline in the past month. During this time, the ratio has dropped from 2.81 to 1.92.
The decline in MVRV shows that QNT holders are becoming less profitable. In fact, the percentage of profitable portfolios has dropped from 85% to 39% over the same period.
Source: IntoTheBlock
While this decline may indicate that QNT is not at risk of being overvalued, it could lead to increased selling pressure if these wallets choose to sell to minimize losses.
Quant’s liquidation chart shows a cluster of liquidations at $120. This level could act as a magnetic zone if vulnerable traders choose to close their positions as the price rises.
Source: Coinglass
If QNT rises and open positions are liquidated at $120, it could lead to a short squeeze as short sellers turn into buyers. This would result in an uptrend.