Quant extends gains, aiming for $120, as risk-on sentiment returns

• Quant rises for the second straight day, trading above $100, supported by increasing risk appetite among large-volume holders.
• QNT's daily active addresses jump to 1,000, signaling network growth and user engagement.
• The MACD validates Quant's uptrend with a buy signal, but the near-overbought RSI cautions traders to temper expectations.

Quant's (QNT) price hovers around $109 at the time of writing on Tuesday, with intraday gains nearing 5%, supported by strong sentiment in the broader crypto market and growing interest among investors, particularly large-volume holders.

Quant enters accumulation phase

The bullish momentum propelling Quant's price above $100 likely emanates from the increasing risk-on sentiment among whales. Santiment's on-chain data shows a sharp increase in the percentage of supply held by addresses holding between 100,000 and 1 million coins. 

This cohort of QNT holders currently accounts for approximately 32% of the total supply, up from around 30% on May 5. The yellow line on the chart below shows two short-lived peaks above 32% on May 19 and May 22, suggesting active profit-taking even as Quant's price extends gains.

Quant Supply Distribution | Source: Santiment 

The token's performance on-chain has also been on the rise, with the number of daily active addresses increasing from 720 on Sunday to 1,059 on Monday, representing a 32% rise. 

Notably, the Daily Active Addresses metric, which tracks the unique addresses that transact QNT daily on the protocol, is also rising. This tool can be used to gauge the level of user engagement and speculation. A consistent increase in this metric often signals improving confidence among investors, which translates to a boost in demand for the token.

Quant Daily Active Addresses metric | Source: Santiment

At the same time, the number of new addresses joining the blockchain protocol has gradually increased to 298 from approximately 107 on April 5, despite noticeable volatility in recent weeks. The 64% surge in the number of newly created addresses signals growing network adoption, which could steady the ongoing uptrend as demand for QNT increases.

Quant Network Growth metric | Source: Santiment

Technical outlook: Quant upholds bullish structure

Quant's price is approaching the short-term resistance at $110 as part of a larger recovery, targeting highs above $120. The token sits on top of key levels such as the upper descending trendline and the confluence support area between $87 and $90, bringing together the 50-day Exponential Moving Average (EMA), the 100-day EMA and the 200-day EMA.

A buy signal from the Moving Average Convergence Divergence (MACD) indicator validated on Monday backs the uptrend. The signal occurred when the blue MACD line crossed above the red signal line. 

Traders would look out for the MACD's continued uptrend above the mean line to ascertain the bullish momentum in upcoming sessions and days. If the MACD reverses toward the center line, it will imply fading bullish momentum amid potential profit-taking.

QNT/USDT daily chart

Still, the near-overbought Relative Strength Index (RSI) at 69 signals caution for traders, as overbought conditions are often a precursor to potential pullbacks. That said, a break above the immediate $110 resistance could reinforce the bullish grip on QNT, bringing the next key level at $120 into sight.

On the other hand, key monitoring levels on the downside range from near-term support at $100, which was tested as resistance on May 22, to the confluence zone between $87 and $90, as well as the demand area at $73, which was tested as the 50-day EMA in late April.