Quant Surges 27% as ISO 20022 Adoption Transforms Cross-Chain Settlement Landscape
Market Structure Shifts Higher
- QNT bounces 27% this week to $95.13 after the recent drop in December
- Quant’s ISO 20022 compliance makes it a central player in the current tokenization movement
- Bulls are holding on to the important $90 barrier and are looking towards the psychological resistance level of $100
Sure, the positive hype stemming from rising demand and utility following mandated software update requirements for cross-border payments among FacilyPay customers is a bullish indicator that could see Quant slice through $100 on hype alone. Nevertheless, we know that deadlines get pushed back. Notably, while this payment network transformation certainly highlights blockchain and QNT’s advantages, the new ISO 20022 messaging status with the potential for multi-trillions in traded fiat cross the payment sector doesn’t go active until January 2023 (after proceeding the go-live date from ’22 or ’21).
| Metric | Value |
|---|---|
| Asset | QUANT (QNT) |
| Current Price | $95.13 |
| Weekly Performance | 27.11% |
| Monthly Performance | 17.88% |
| RSI (Relative Strength Index) | 62.1 |
| ADX (Average Directional Index) | 22.2 |
| MACD (MACD Level) | 0.69 |
| CCI (Commodity Channel Index, 20-period) | 178.62 |
Momentum Builds From Oversold Territory as ISO Compliance Sparks Accumulation
The RSI remains neutral on the weekly timeframe at 46.05, best seen as a backstop to prevent overbought spikes. Price already exceeded the 10-week moving average taking last week’s high before a bearish daily candle-wick marked resistance at 20-week MA. The weekly timeframe will remain neutral for another two weeks unless the price falls drastically, for similar business performance.
The interesting observation here is that RSI on the weekly timeframe is still fairly muted at 50.56, indicating that the daily momentum surge likely hasn’t caused the broader timeframe to synchronize. Hence, for swing players, this mismatch between the daily being on the front foot and the weekly lying neutral sets up an intriguing dynamic – the daily momentum may push the weekly higher if the bulls keep their grip over $90, else, the $100 check likely turns the tide lower on momentum barring no timeframe popularity. The QuantNet launch news acted as an additional tailwind with momentum notably upticking post the commencement of the tokenized markets platform.
ADX at 22.19 Confirms Early-Stage Trend After Two Months of Choppy Consolidation
As we focus on trend strength, the 22.19 ADX reading is the first push above 20 since October’s price discovery directional move, which suggest we are finally overcoming the range-bound chop of November and December. In other words, we are leaving the type of market where range traders have the advantage (buy supports around $70, sell resistance at $100) and transitioning into one where trend-following strategies work again. The 13-day window until banks must be ISO 20022 compliant acted as the catalyst for this structural change in the market, leading QNT out of a two-month compression pattern.
Simply put, an ADX rising through the 20-25 region is generally the best place to be as far as fresh uptrends are concerned while not being too extended to the point of diminishing returns above 40. To determine just how explosive QNT’s rallies can become from these ADX levels, including the 30-35 region when ADX is accelerating, we need look no further than the March episode when a similarly early-uptrend confirming ADX trajectory added to a more than 45% advance. As a result, momentum traders will want to lean toward a resumption in the coming sessions as long as ADX continues its ascent while range traders will need to adjust their plans for this newly-developing trending phase.
20-Day EMA at $82.82 Flips From Resistance to Critical Bull Support
The 10-day EMA holds as a strong support confluence with the upper boundaries of both the green ascending channel and the red climax pattern arriving in the high $84s. All moving averages are trending higher as the 10-day EMA ($84.87) spectacularly capped two previous rally tops on October 26th and December 21st. Longs face the arduous task of breaking out above a trend line that’s 130 days old, along with a mid-channel resistance test in the mid $87s. This level represents critical support that turned resistance with the previous channel break and the late November slide.
The most important is the compression between the 50-day ($84.23) and 100-day ($90.03) EMAs creating a support sandwich between $84-90 that should take the sting out of any near-term pullbacks. The 200-day EMA is much further down at $93.81, so this major long-term average that often signals bull/bear market structure is well and truly in the rearview mirror. That former resistance zone from $82-84 now becomes a line in the sand for bulls – any weekly close below is a game-over breakout invalidation and likely triggers stops back toward December’s $70 lows.
Triple-Digit Resistance at $100 Meets Monthly R1 Pivot – Key Battle Zone Ahead
There is strong resistance between QNT’s current price of $95.13 and the important level of $100 above it. This level encompasses December highs at $100 and the monthly R1 pivot at $110.29. The area has blocked advances three times in the last eight weeks. It’s a solid ceiling that has prevented buyers from escaping every time sentiment becomes too optimistic. These sell orders come from both early buyers looking to take profits and new short sellers hoping for another rejection. This will be the field where QNT’s next big move is decided.
The bulls will face a test of three-week highs (and 23.6% Fibo of the $111-66 drop) at $87+ ahead of psychological resistance between $90-91 — sites of the 200-day EMA and July’s last major low. Price is sandwiched between the 200-day EMA and MA lines for the first time since July, presenting a pivotal technical juncture for price bias heading into quarter-end.
The market structure currently suggests that you will see higher prices over the coming weeks and months as long as Quant continues to hold above $100.00, and even on a break below, bulls will look for a buying response above $82.82, as this is the last prior swing high that was made. The short-term uptrend is extremely bullish. The moderate-term uptrend is bullish. The long-term uptrend is bullish. The implied volatility for March reached 284% at its highest meaning that many was purchasing options to own QNT using leveraged to capture additional upside potential gains.
Bulls Require Decisive Close Above $100 to Unlock $120 Measured Move Target
If QNT can reach a weekly close above $100 with increased volume, it indicates a clearly bullish trend from a technical standpoint. In this case, the expected price levels based on technical analysis would be $120 and possibly $140, considering that the latter aligns with the resistance level of monthly R2. Given the ISO 20022 adoption requirements and the fact that Quant Network’s technology is being used in real-world applications, there are fundamental reasons that can support this breakout. In particular, major financial organizations are in urgent need of blockchain technology that is ISO 20022 compliant, and they will be actively looking for solutions in the next couple of weeks.
If the ISO-powered short squeeze is for real, rather than simply a creation of the CoinTelegraph’s of this world, today’s the day the bulls need to push through $100. Beating this psychological hurdle will be all the harder with MACD and RSI still pinned firmly in the nosebleed section, so it’s a pivotal moment. For those fortunate new buyers that managed to climb aboard post-90c, year-to-date gains will be similar to the amount starting with the letter ‘R’. Not to be missed.
Considering all of these factors coupled with QNT’s performance during the previous cycle, a realistic target for the end of January would be in the $120-130 range before the release of the Overledger Network and payment structures to drive its highest liquidity event potentially ever. Based on the historical data and the current form, the build-up to these releases could conceivably see QNT gain 50-100% within the first week of January and another 50-100% leading into the second week with the network’s activation event horizon in sight.
