Quant [QNT] surges to 3-month peak—but here’s the catch traders are ignoring

Quant’s native token QNT just punched through its highest price level since February—classic crypto euphoria at work. But before you FOMO in, let’s talk about the red flags waving in the charts.

Sure, the bulls are high-fiving over the breakout, but seasoned traders know: every rally plants the seeds of its own correction. Especially when Wall Street’s algo-traders start treating crypto like their personal casino.

Stay sharp—this market rewards the patient, not the reckless.

Source: Coinalyze

Additionally, Futures market activity has surged significantly, with Quant’s Open Interest rising by 41% to $22 million, according to CoinGlass data.

This increase suggests that investors are actively taking strategic positions, whether long or short.

Despite the spike in futures activity, most investors appear to be going short. Quant’s Funding Rate (FR) has dropped sharply into negative territory, even as price and volume continue to rise.

At the time of writing, the FR hit a monthly low, indicating strong bearish sentiment among futures traders.

Source: Messari

This suggests that most investors are entering the market with short positions, which is typically a bearish signal.

Beyond the growing demand for shorts, the surge in futures activity appears to be driven by selling volume.  While Futures sell volume is declining, it remains higher than buy volume, with 6K sell orders compared to 3K buy orders.

This indicates that futures market participants are not bullish, despite the rising prices.

Source: CoinGlass

The spot market reflects a similar trend, with exchange inflows surpassing outflows.

Despite rising prices, sellers have offloaded $1.1 million worth of Quant, signaling significant profit-taking by investors who had been underwater since February.

This price increase, paired with bearish sentiment, raises questions about Quant’s future trajectory.

What’s next for QNT

According to AMBCrypto’s analysis, Quant is experiencing strong upward momentum, but market sentiment is yet to turn bullish.

The altcoin’s MACD and RSI bullish crossovers confirm strong upward momentum.

The RSI crossover indicates a surge in buyer pressure, with buyers firmly controlling the market. Meanwhile, the MACD crossover reinforces this demand, signaling that the uptrend is likely to continue.

Source: TradingView

The bullish crossovers suggest that speculators have entered the market, driving prices higher over the past day.

If speculators continue buying, Quant could rally to $113. However, conviction buyers have yet to step in, and overall market sentiment remains cautious.

Meanwhile, increased selling activity on exchanges indicates that holders are taking profits. If this trend continues, the uptrend may be short-lived, and QNT could retrace to $98.