Divergence In Quant Price and OI data: Is A Reversal On the Hori

5月13日

Divergence In Quant Price and OI data: Is A Reversal On the Horizon?
The rising Open Interest figures suggest a disparity with the current price trend, hinting at an impending market upturn.
The Quant price may bottom out if the bulls are able to reclaim the $100 level and sustain above it.

The broader crypto market is on an upward trajectory intraday, attempting to offset recent declines. Leading the charge, Bitcoin has risen by 2.35%, while Ethereum has also seen a 1.65% increase compared to its previous day's close.

In tandem with these market giants, the altcoin Quant is making similar progress, having risen by approximately 1.92% at the time of writing. Moreover, a noticeable divergence between open interest data and price points to a potential trend reversal in the crypto sphere.

Let's explore more using the metrics and try to find insights into potential price movements in upcoming trading sessions.
Open Interest data and Price is showing a divergence!
According to information from the financial analytics platform app.santiment.net, a noticeable divergence has emerged between the price of Quant and the aggregate value of open contracts denominated in USD. Specifically, since May 5th, there has been a consistent uptrend in Open Interest data.

<iframe title="Santiment Chart: Total Open Interest in USD (QNT), Price (QNT)" width="1170" height="425" src="embed.santiment.net/chart?ps=quant&pt=QNT&df=2024-02-07T00:00:00.000Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=0;1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>

Conversely, during the same timeframe, the price of QNT has been on a decline, further accentuating the divergence. This increase in Open Interest suggests that major players may be positioning themselves in anticipation of a price reversal, despite the ongoing price decline.

The uptick in Open Interest could signal an upcoming reversal for QNT. Nevertheless, investors should look for confirmation in both price and trading volume before drawing conclusions.
Could Quant Crypto Bottom Out If the Market Recovers.
Quant's price trajectory has been on a downward trend, facing significant resistance around the $110 mark before falling below the key $100 level.

Currently, the price hovers around $90, aligning with its prior low point. Now, If the bulls manage to uphold this level and the $90 mark, it could potentially lead to the formation of a double bottom pattern.



Furthermore, A successful ascent above the $110 neckline might then signal a reversal in Quant's price direction. This scenario, however, hinges on a broader market revival.

Conversely, should the decline persist, Quant could descend to new multi-month lows, perpetuating the current bearish momentum.
Conclusion.
The crypto market is rebounding, with Bitcoin and Ethereum posting intraday gains. Quant's price has also surged by 1.92%, despite a divergence between rising Open Interest and falling prices since May 5th, hinting at a potential reversal.

As of Now, Investors should seek confirmation in price and volume. Quant faces a critical juncture: if it maintains the $90 level, a double bottom pattern could indicate a trend reversal, contingent on broader market recovery. Otherwise, the downtrend may continue, leading to new lows for Quant.