Quant’s [QNT] rally in the last day remains significant, with investor confidence reaching a notable 88% on the chart.

QNT turned in a 14% gain, at press time, the highest in the past 24 hours, while other assets failed to deliver double-digit returns.

The question now is whether this recent capital addition can sustain QNT past the $100 threshold reflected on the chart.

Why is QNT up?

The most obvious evidence supporting QNT’s recent price rally comes from a decisive convergence between spot and derivative investors.

In the spot market, investors purchased a significant amount of QNT, totalling $248,000, after two days of sell-offs that weighed on the price.

This recent acquisition of QNT, a quick shift from the previous downtrend, suggests underlying confidence in price at its current level.

Derivative investors are equally involved.

Open Interest (OI) surged to about $18 million on the chart, with $1.5 million added in the past 24 hours. Given the current positive Funding Rate, this increase indicates that investors are likely positioning for QNT to trend further upward.

At press time, QNT was trading at $93, with the asset approaching $100. However, other sentiment indicators suggest this move may be unlikely.

QNT hits major supply zone

The supply zone ahead of price remains QNT’s most significant hurdle.

A supply zone is a known area where unfilled sell orders sit. These orders are often triggered when the price reaches the zone, forcing it lower.

This supply zone between $93.32 and $99.13 on the chart has rejected price twice, the first time causing a 27.73% drop, and the second time triggering a 27.06% decline.

QNT could face a similar fate, with the asset potentially dropping an average of 27.3% to around $70.

However, the upside remains possible. A breakout above the supply zone highlights three levels of interest: $104, $113, and a peak at $121 on the chart.

The market shows a unique set of conditions that support a bullish outlook, but still warn investors to remain cautious.

Capital inflow rises, but caution remains

Capital inflow into the market increased notably in the past day, as the Money Flow Index (MFI) continues to rise.

The MFI, when moving upward above the 50 level, indicates new capital entering the market and confirms that bulls are actively buying.

However, there’s a counter-signal. The Accumulation/Distribution (A/D) indicator shows that investors are distributing the token, as volume has dropped to 970,000.

While the signals appear conflicting, the distribution suggests investors are taking profit rather than initiating a major sell-off.

However, if both the Distribution metric and the MFI decline simultaneously, QNT could push investors into losses, as the asset would likely plunge significantly.

Final Thoughts

• QNT’s rally followed alignment from spot and derivative investors, driven by capital inflows rather than a rotation of money across the market.
• The supply zone, active distribution, and recurring sell volume remain QNT’s major obstacles and could hinder further price movement.