As Quant’s price [QNT] remains stuck near $195, it appears that the continued downward trend is too strong to recover from. Since plummeting from nearly $300 in late September, Quant has given back most of what was recovered. This simply means current buyers are now trying to protect the lower end of the support zone around $191-$195.
However, each rebound seems to stall before breaking through the downward trend line, suggesting that numerous sellers were willing to sell the lows.
If Quant holds above $191, then it could create enough stability to allow buyers to test psychological resistance at $200. A successful test at $200 should give enough momentum to begin to challenge the horizontal resistance just north of $220.
On the other hand, a closing price below $191 could trigger more selling. In turn, this could lead to more declines and ultimately less investor confidence in a quick turnaround.
QNT’s recovery faces a volume test
Quant’s recovery faces a participation problem as traders reduce exposure following September’s breakout. As shown below, Open Interest (OI) is now settling in between $100 and $104 million, and daily spot volume is ranging between $28 and $55 million.
At press time the Spot Volume had declined by 21%, standing at $55.89 million.
The reduction in fresh trade volume means that there are fewer people available to buy into any sustained buying. Hence, any rebound could be short-lived due to continued selling.
Although Funding Rates appear to be slightly higher than normal, it indicates that many investors are still taking long positions without too much leverage.
The next test is at $206-$215, and at this point, QNT will require stronger buying power to be able to overcome resistance. If successful, a volume-backed breakout could unlock $220.20 and $252–$258, while weak demand risks prolonging the recovery.
Rising Bitcoin dominance puts QNT under pressure
Meanwhile, QNT’s recovery is facing further issues based on increasing Bitcoin dominance and investors turning towards Bitcoin [BTC] over altcoins. Bitcoin dominance has risen over 60%. Only 40-52% of altcoins were currently above their 200-day MA.
With shrinking participation in the market, QNT is becoming more exposed to selling pressure, especially considering how far its price has fallen. If the $191 support zone is broken, then QNT will most likely fall towards $180-$182 before buyers can try to regain control.
A deeper decline could bring out prior levels at $145, and therefore QNT’s downside risk goes well beyond just the price structure. Unless altcoin demand improves, weakening market breadth could undermine recovery attempts and prolong the correction.
Final Summary
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Quant risks deeper losses if buyers fail to defend the $191 support level.
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QNT needs stronger demand to reclaim $215 as Bitcoin dominance above 60% pressures altcoins.
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