Quant Momentum Skyrockets But QNT Rally Seems Unsubstantiated

CryptoMode Quant QNT

Many people keep close tabs on the crypto markets during this extensive accumulation period. Quant (QNT) is of great interest as it has shown tremendous upward potential. However, there are concerns over this asset being vastly overbought. 

No Idea What Quant (QNT) Is?

Given the myriad of ERC-20 tokens on the market, Quant might not look unusual at first glance. However, the asset is part of Quant Network’s “Overledger” product line. It spans various enterprise-grade software solutions to connect public blockchains and private networks. In essence, Overledger can – theoretically – bring any blockchain-based project to any other blockchain network. 

Infrastructure projects often make for solid long-term crypto investments. Quant has been a relatively quiet project on the price front. That is despite its all-time high of over $425 in September 2021. Since then, QNT’s value quickly plummeted to under $50 and seemed to stay there. The current overarching bearish market conditions do not allow for much positive momentum. 

It is all the more interesting to see QNT shoot up to above $200 in recent weeks. The asset gained over 96% in value this past month yet remains down by 32% YoY. Moreover, it is still over 50% below the all-time high. Some see this rally as an attempt to set a new ETH. Others fear it is a speculative run pushing QNT in the “severely overbought” territory. 

For those wondering about investing in Quant, there is no easy answer. A spectacular run-up in a matter of weeks is always a tad suspicious, especially when all other markets remain subdued. Additionally, one has to wonder if the current market cap for QNT makes sense. Is the project worth over $3 billion (or over $9.5 billion at a fully diluted valuation)? That answer is never straightforward.

Why Is QNT Going Up Now?

The big question is why people suddenly show such an interest in Quant. Traditionally, an enterprise-grade project would deliver some big news to excite investors and speculators. But, unfortunately, there does not appear to be anything concrete. 

That doesn’t mean Quant has no potential or long-term vision, but there is no logical reasoning for this ongoing price rally. Quant has some exciting partnerships – that aren’t new -, but it does not appear anything specific has happened recently. 

In crypto, projects don’t need news or developments to see prices rise. However, the rally will not be as sustainable as it would otherwise. It is hard to say why Quant is getting this attention specifically or where the price will head next. Without fundamental reasons for an increase, the momentum may quickly turn bearish. Social media activity remains primarily bullish, although that alone won’t be sufficient. 

Quant Social Sentiment

It is true the QNT price has risen steadily over the past few months. That is visible when looking at the recent monthly chart by LunarCrush. There are no steep price gains but rather a slow and steady process. That is, until the past few days, when momentum suddenly accelerated. Even so, the social sentiment for QNT has been bullish all month.

One could argue QNT is getting pumped on social media. A monthly increase across Twitter (+166.1%), Reddit (+143.7%), and YouTube (+133.3%) would indicate that is where the attention comes from. However, that attention comes with a 174.6% increase in volatility and nearly 400% higher news volume. Most of this social content revolves around the QNT price rather than Quant’s underpinning fundamentals. 

Moreover, the 163% increase in social mentions leads to a 160.4% gain in bullish sentiment. Simultaneously, QNT has nearly 200% more bearish sentiment. That latter part is relatively normal after such a seemingly unsubstantiated bull run. It is unclear what will happen in the coming weeks, but Quant will remain a risky investment for anyone at these prices. 

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