Back with another price prediction today. The markets are literally standing on a knife-edge during this final week of March 2020. If Bitcoin can break and close above $7,000 at some point this week we might see some positive growth amongst altcoins. However, if Bitcoin rolls over and falls beneath $6,000 again we will be headed in the other direction!
Nevertheless, today I would like to provide a 2020 price prediction for a relatively new interoperability project that is called Quant.
Firstly, let us take a look at the performance of Quant (QNT) below from January 2019 until today;
Quickly looking at the chart above, we can see that QNT did see some positive price action throughout the year as it managed to rise from a low of around $2.20 at the start of 2019 and closed at the price of around $3.15 at the end of the year.
Furthermore, QNT saw some extraordinary price growth in the first half of 2020. It managed to increase by almost 800% as it surged as high as $13.00 in July 2019. Sadly, the sellers stepped back in here and started to push the price further lower as the year started to close.
Quant Network truly is an outlier in the interoperability sector. To begin with, it has an extremely experienced team that is driving the growth of the project. They know what is needed in enterprise solutions for DLT as they have previously taken up important roles in major enterprises.
Another great reason to pay attention to Quant is the fact that their list of partnerships only continues to grow wider and wider. They have already snagged huge companies as partners such as IBM and Amazon Web Services, however, we can only expect this list of important enterprises to grow - further expanding the Quant Network itself.
Lastly, we will only see the daily active users on Quant continue to grow over the following months. This will be especially so after the release of further multi-chain decentralized applications (dApps) that will allow dApps to leverage different features from different blockchains in the same application!
For the reasons stated above, and more discussed below, I believe that QNT has the potential to surge by a total of 410% from the current trading price ($2.75) to reach my 2020 price prediction of $14.00.
In this article, I’ll firstly cover a range of topics that I believe will influence QNT in reaching my $14.00 target during 2020 and then analyze QNT on the daily chart to highlight some areas of resistance on the way toward the target.
What Is Quant (QNT) Coin?
Quant describes itself as the project that will connect the world’s networks to blockchains - with just 3 lines of code! Sounds interesting? Damn right it does! It almost sounds impossible.
Quant is an interoperability project that is designed to help blockchains connect together and speak to one another. However, it takes things one step further than the rest of the interoperability projects that you may already know about.
The team over at Quant have created the first blockchain based operating system, something they have called Overledger. This operating system allows blockchains to connect to one another but it also allows ‘legacy networks’ to connect to the blockchain and distributed ledger technologies (DLT).
Overledger is designed to help governments, organizations, enterprises, and individuals around the globe to be able to connect to each other and to other blockchains to leverage the power of decentralized cryptocurrency.
It is primarily focused on allowing enterprises to be able to connect to the DLT world and makes it easier for them to integrate blockchain applications in their traditional financial system. With their solution, enterprises will be able to simply just plug their already established financial platform into the blockchain world with the Overledger code. This creates a scenario in which they do not have to change their entire financial platform if they wish to integrate blockchain/DLT into their system.
A Strong Team For A Strong Project
The team is filled by professional individuals who have held major governmental and enterprise roles before joining Quant.
It is led by Gilbert Verdian who is a technologist and securities expert that has swerved at large corporations such as PWC, HSBC, and Ernst & Young. He had also served some time as an advisor to the Federal Reserve to provide advice on payment security matters.
It is also joined by the likes of Cecilia Harvey, the COO, who has held positions at HSBC, Citi, Barclays, Morgan Stanley, and IBM. This project can certainly become very successful with individuals that have so much experience at the helm of it.
Quant had finished their ICO in May 2018 in which they managed to raise just over $11 million which allowed them to go on to develop Overledger.
To find out more about Quant and the way it works, take a look at this great in-depth write-up.
Network Continues To Grow
Even though the Quant Network is still in the relatively early stages of its lifecycle, data from Santiment suggests that the project is gaining traction at a steady pace. Metrics such as the Daily Active Addresses prove that there continue to be active participants within the ecosystem and the number is slowly rising.
Additionally, the Network Growth statistics from Santiment further solidifies this thinking;
Partnerships Are Key For Quant
The list of partnerships for Quant is truly excessive and it only continues to grow. Following is a short selection of some of their recent partnerships;
AX Trading - An electronic trading network that is aimed at institutional investors. Quant and AX trading have partnered together to increase the interoperability of securities and regulated digital assets.
SIMBA Chain - A smart-contract-as-a-service platform to make dApp development simple. The partnership with SIMBA Chain is largely focused on the multi-chain evolution of smart contracts to remove the barrier to developing and deploying these multichain smart contracts.
One of the major driving forces for the Quant network will be the introduction of multi-chain applications. These are decentralized applications that have access to run different parts of the application on top of the different blockchains. For example, a social media application could use Bitcoin as the security layer, FileCoin to store the data, and use the speed of ETH 2.0 (when it comes out) to facilitate all of the messages! Now that would be truly impressive!
SIA - The partnership with SIA was an extremely important announcement. The partnership focuses on creating interoperability solutions for financial institutions in order to improve efficiency and create new business models. SIA already provides the infrastructure for banks and enterprises to build applications based on blockchain technology.
The list of partnerships goes on and on. For a more detailed overview of the most important partnerships, I recommend taking a look at this article.
Quant (QNT) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above for QNT, we can see that the cryptocurrency started the year off pretty well as it surged to the $5.00 handle during February 2019. It then went on to slowly grind lower during the next 3 months until finding support at $1.67 during May 2019. This level of support is extremely important because QNT went on to rebound from here recently (more on that below).
During June and July 2019 QNT started its epic 800% price surge. It quickly broke the resistance at $5.00 and went on to climb much further higher to reach above $15.00. More specifically, it had met resistance at $14.35 which is resistance provided by a 1.618 Fibonacci Extension level. QNT was never able to close above this level of resistance which caused it to roll over and fall lower.
The cryptocurrency then went on to drop into the $5.00 support again in September and remained above this level for the majority of the year. However, in December 2019, QNT dipped beneath this level as it dropped into support at around $3.50 where it closed the year.
In January 2020 QNT briefly dipped toward the $3.00 level before rebounding and reaching the $5.15 resistance in February. Unfortunately, like the rest of the cryptocurrency industry, QNT suffered during the capitulation seen during February 2020 and March 2020. It went on to drop beneath the support at $3.30 and continued to fall during March until reaching the aforementioned support at $1.67.
This is an important support that I had mentioned above and we can see that QNT really managed to rebound aggressively from here. It is further bolstered by a downside 1.618 Fib Extension level granting additional support strength to the region.
We can see that, after rebounding, QNT has climbed higher and is now trading at resistance at $2.72 which is support (now turned resistance) provided by a downside 1.414 Fibonacci Extension level.
Are We Bullish Or Bearish (as of late March 2020)?
It would great to say we are bullish as of late March 2020, however, we are far from this. We are not even in a neutral trading condition as QNT would need to break above $3.00 to turn neutral. To turn bullish, QNT would have to climb and close above the $5.15 resistance level.
This pretty much means we are still bearish as of late March 2020. However, for the bullish run to continue, QNT would need to break and close beneath the $1.67 support which is deemed to be pretty solid! So we should not really be seeing the cryptocurrency headed too much further lower unless some further drastic incidents happen within the cryptocurrency industry (or the entire economy as a whole).
If the sellers do push lower, we can expect support at $2.50, $2.00, and $1.67. Beneath the solid support at $1.67, added support is found at $1.50, $1.30, and $1.04 (downside 1.414 Fib Extension - purple).
If we do break beneath $1.00, we can expect more support at $0.72 (October 2018 and November 2018 support), $0.50, and $0.16 (downside 1.618 Fib Extension and all-time low).
Where Is The Resistance On The Way Up TO $14.00?
On the other hand, once QNT breaks $3.00, we can expect the first level of resistance to be located at $3.50 (downside 1.272 Fib Extension, support turned to resistance). Above this, resistance lies at $4.00, $4.50 (200-day EMA), and $4.93. The resistance at $4.93 is provided by a long term bearish .236 Fibonacci Retracement level that is measured from the ATH price to the recent 2020 price low.
If the buyers can continue to break the strong resistance at $5.15, higher resistance then lies at $5.50, $6.00, $6.15, $6.50, and $6.97 (bearish .382 Fib Retracement level). Above $7.00, resistance lies at $7.65, $8.00, and $8.62 (bearish .5 Fibonacci Retracement level). This is followed by resistance at $9.00, $9.50, and $10.00.
If the bulling pressure causes QNT to penetrate above $10.00, resistance then lies at $10.27 (bearish .618 Fib Retracement), $10.50, $11.00, and $11.66 (previous 1.272 Fib Extension level). This is then followed up with resistance at $12.00, $12.62 (bearish .786 Fib Retracemetn), and $13.00.
The bulls will then only need to break resistance at $13.50 before being clear to make an attempt at my 2020 target of $14.00. The resistance at $14.00 is provided by a bearish .886 Fibonacci Retracement level.
QNT is still relatively young within the industry and not too many people actually understand what they are trying to do. Hopefully, this article has provided some more insight into what the team is up to and how QNT may progress over the following few months.
The main thing to watch out for is the continuing expansion of the high-level partnerships for QNT. Additionally, another thing to watch will be the multi-chain dApps that will start to take the industry by storm. If the team can continue to provide these two factors, QNT should certainly be able to rise and hit my 2020 target of $14.00.