Quant eyes $146 as inverse H&S breakout fuels bullish reversal hopes

QNT is showing early signs of a bullish reversal, with a potential inverse head and shoulders pattern forming on the chart.

According to data from crypto.news, Quant (QNT) jumped over 10% in the past 24 hours, reaching an intraday high of $106.67 on the morning of May 27. This move pushed its market cap to around $1.55 billion, placing QNT nearly 80% above its year-to-date low.

Daily trading volume also shot up by more than 200%, hitting over $50 million. Meanwhile, its open interest spiked 43% to $22.9 million, its highest level since February, hinting at a strong wave of speculative activity.

The recent uptick in momentum followed an announcement from CEO Gilbert Verdian, who revealed that Overledger Fusion will begin rolling out in June 2025. The new upgrade, described as a “Layer 2.5” network, introduces multi-chain rollups, secure cross-chain smart contracts, and improved privacy tools, all aimed at helping blockchains work more smoothly with both enterprise systems and DeFi applications.

According to Quant, the goal is to fix major pain points that have slowed down institutional adoption of public blockchains, such as compliance risks, data privacy concerns, and poor scalability. By allowing smoother asset and data movement between private and public chains, Fusion could appeal to banks, fintech firms, and other organizations exploring blockchain integration.

This update seems to have caught the market’s attention, as it outlines a clearer roadmap for how Quant plans to expand its role in blockchain interoperability. While it’s still in the early days, traders may be reacting to the potential for broader adoption, especially with Quant’s existing involvement in initiatives like the digital euro.

Adding to the bullish case, Santiment data shows daily active addresses on the Quant network surged 47% over the past day, pointing to a rise in user activity and engagement.

From a technical standpoint, QNT printed a bullish engulfing candle on Monday, confirming a breakout from the inverse head and shoulders pattern on the daily chart. This breakout is supported by a golden cross between the 50-day and 200-day exponential moving averages, along with a fresh MACD crossover, both signals that typically suggest a strengthening bullish trend.

If the breakout holds, the pattern projects a potential upside of about 42.3% from the neckline around $102, placing the price target near $146. This also lines up with the 78.6% Fibonacci retracement level, adding more weight to that target.

That said, there are a couple of resistance zones along the way, $114 marks the 50% retracement, and $127 represents the 61.8% level, both of which could act as minor hurdles during the climb.

On the flip side, if QNT dips back below $102, the bullish setup could be invalidated. In that case, the price might retreat toward the $91 support zone before finding a new direction.