Quant (QNT) has retreated to the critical support level of 56 dollars with over 14% value loss in the last 24 hours; while RSI at 29 level gives an oversold signal, is this bottom formation a recovery opportunity or a harbinger of deeper declines?
Market Outlook and Current Situation
The Quant network is experiencing a sharp decline parallel to the general bloodbath in the crypto market. While the current price is stabilizing around 56.48 dollars, the 14.16% loss in the last 24 hours occurred with high trading volume in the 56.02-67.16 dollar range. The daily volume of 20.33 million dollars is above typical altcoin levels, but behind this decline lies Bitcoin’s parallel 13% retreat. While downtrend dominance prevails in the general market, QNT’s staying below EMA20 (71.43 dollars) reinforces short-term bearish momentum.
In the multi-timeframe (MTF) view, a total of 12 strong levels were identified across 1D, 3D, and 1W charts: 1 support/4 resistances on 1D, similar distribution on 3D, and a balanced 3S/3R configuration on the weekly. The Supertrend indicator gives a bearish signal, marking 78.38 dollars as resistance. There is no significant catalyst in the news flow, which increases the weight of technical factors. Investors should review their positions through detailed examination via QNT spot analyses.
The overall market sentiment is negative; the correlation in altcoins is fueled by BTC’s weakness around the 63 thousand dollar band. Despite its interoperability-focused structure, QNT is showing short-term weakness under macro pressure. However, oversold conditions are noteworthy for long-term investors.
Technical Analysis: Levels to Watch
Support Zones
The most critical support is at the 56.0200 dollar level (score: 80/100), where this region testing the last 24-hour lows forms a strong base in MTF confluence. Volume accumulation on 1D and 3D timeframes could increase short-term rebound potential if it holds here. At lower levels, the 48-50 dollar range on weekly charts should be monitored as secondary support, as it coincides with the Fibonacci retracement’s 61.8% level.
If 56 dollars breaks, momentum could quickly shift to the bearish side; in this scenario, the deep target of 23.6677 dollars (score: 20) could come into play. Volume increase during support tests would signal buyers entering – the current low volume is causing concern.
Resistance Barriers
The first resistance is at 59.6567 dollars (score: 65/100), followed by 63.2933 dollars (64/100) and the major 88.3844 dollars (67/100) levels. These barriers overlap with EMA20 and Supertrend resistances, limiting upward movements. Resistance clusters on the 1W timeframe make reaching 90.8373 dollars (score: 47) difficult for recovery.
In a breakout scenario, surpassing the 67.16 dollar 24h highs could trigger a short squeeze in the short term. However, under the current downtrend, these resistances appear to remain strong; traders can use these levels as pivots for QNT futures.
Momentum Indicators and Trend Strength
RSI(14) at 29.49 is wandering in the oversold region; while this gives a short-term bottom signal, it can lead to false positives in a downtrend. Looking at historical data, QNT has experienced 20-30% recoveries from similar RSI levels, but BTC correlation could be an obstacle this time. The MACD histogram is negative and expanding below the zero line, confirming bearish divergence.
The EMAs hierarchy is disrupted: Price is below EMA20, EMA50 (around 65 dollars) is in resistance position. Supertrend has given a bearish flip, ADX measuring trend strength is above 35 – confirmation of a strong downtrend. In MTF, 3D RSI is neutralizing around 35, while on 1W it’s flat at 45; this increases the probability of a pivot depending on weekly closes.
Volume profile analysis shows an acceptance zone in the 60-65 dollar range; the current low volume may indicate the trend is exhausting. Stochastic oscillator in the 20s, oversold cross expected – early warning for momentum shift.
Risk Assessment and Trading Outlook
Short-term outlook is bearish: If 56 dollar support breaks, 23 dollar target offers attractive short opportunities with risk/reward ratio around 1:2.5. In a bullish scenario, surpassing the 59-63 dollar range could lead to a journey to 90 dollars, R/R 1:1.8. Overall risk is high; volatility above 5%, stop-losses should be placed below support.
Long-term view is neutral-bearish: Although the protocol’s fundamentals are solid, patience is required while the macro environment crushes altcoins. Traders should stalk asymmetric opportunities by monitoring MTF confluence – for example, RSI divergence as a signal for long entry. In every scenario, position sizing is critical; there is a risk of liquidity squeeze across the market.
In summary, the current setup tempts bottom hunters, but aggressive longs are risky without trend breakout. For a balanced portfolio, keep QNT allocation below 5%.
Bitcoin Correlation
QNT is moving in 0.85% correlation with BTC; BTC’s 13% decline has sabotaged the altcoin rally. BTC is in a downtrend at 63.044 dollars, Supertrend bearish – main supports at 62.345, 59.260, and 48.362 dollars. Breaking these levels could drag QNT below 50 dollars.
If BTC surpasses resistances at 66.335, 70.325, and 73.244 dollars, relief comes for QNT – 59-63 dollars could be tested. Rising BTC dominance crushes altcoins; QNT traders should prioritize BTC pivots, as local recoveries remain short-lived.
This analysis uses Chief Analyst Devrim Cacal’s market views and methodology.
Source: https://en.coinotag.com/analysis/qnt-technical-analysis-february-5-2026-critical-support-test-and-market-commentary
