The Quant (QNT) price has crashed and slowly formed a falling wedge pattern, suggesting potential gains in the near term.

The daily chart shows that the Quant price has moved into a deep bear market after falling by over 47% from its highest level in November last year.

The Quant price (QNT) has crashed in the past few months as the token dropped to the low of $90. It is now down by almost 50% from the highest level reached in November last year. The coin’s price is slowly forming a falling wedge pattern, which suggests that the coin may be due for gains.

As the Quant price crashed, it has remained in a deep bear market. This bear market started after the coin’s price dropped by over 47% from the highest point reached in November last year.

The Quant price has also remained lower than the 50-day moving average, which shows that bears are still in control. The coin’s price dropped below the 61.8% Fibonacci Retracement level, from which most coins tend to bounce back.

The Quant price is also slowly forming a falling wedge pattern. A wedge pattern is formed by two declining trendlines that are converging. In a falling wedge, the lower trendline is formed by connecting the highest lows while the upper trendline is made by linking the lowest highs.

As the trendlines converge, the price action is said to be compressing. This compression is said to lead to a strong breakout once the price pierces through the wedge pattern.

In the case of Quant, the wedge pattern is now nearing its convergence point. This breakout is likely to be bullish since the coin is in a bear market and the wedge pattern is bearish-linked.

The coin’s bullish outlook is further supported by the Relative Strength Index (RSI) and the MacDemeter Indicator, both of which have formed a positive divergence pattern. This pattern forms when the oscillator is moving upwards as the coin’s price remains under pressure.

Both indicators had formed lower highs in October and November but began rising in December even as the Quant price continued making lower lows. This divergence is usually followed by a strong upward move.

The coin will likely bounce back in the coming days. Such a move would point to further gains, potentially to the 23.6% retracement level at $143, up by 60% from the current level.

A drop below the support at $75.8 would invalidate the bullish outlook. In this case, the next support level is at $64.04, which is the 23.6% Fibonacci Retracement level.

What next for the QNT token as exchange reserves fall?

The Quant price has three fundamental catalysts that may push its price higher.

First, there are indications that the Quant token’s holders are not selling despite the recent crash. This is seen in the amount of QNT tokens that remain in centralized exchanges.

As seen in the chart, these balances have fallen from over 1 million in December to 926k today. That is a sign that crypto investors are no longer selling the coin in a panic.

The other catalyst for the Quant token is that it is in the growing Real World Asset (RWA) tokenization industry. RWA is a technology that enables users to convert the rights of a physical or a financial asset into a digital token. Some of the use cases include tokenizing bonds, equities, and other financial assets.

Quant is involved in this technology through its Overledger solution. Overledger is an interoperability solution that aims to connect multiple blockchains and traditional systems. It hopes to create a blockchain operating system that will be so useful when the RWA industry takes off.

Finally, the Quant token may benefit from its relationship with Oracle (NYSE:). Oracle recently launched the Oracle Blockchain Platform Digital Assets Edition (OBP DA).

This solution aims to help companies streamline the development and deployment of digital assets applications and build unified ledgers. It is also designed to support the creation of digital asset exchanges, clearing houses, and central bank digital currencies (CBDCs).