Quant (QNT) has been falling since Aug 8 and could potentially complete its correction close to $88.
QNT had been decreasing underneath a descending resistance line since reaching an all-time high price of $429.69 in Sept. The downward movement led to a low of $40.60 in June.
The price has been moving upwards since. It broke out from the descending resistance line on June 19. The bounce that led to the upward movement also served to validate the $45 horizontal area as support.
The most interesting development comes from the weekly RSI, which is in the process of increasing above 50 (green circle). Whether it is successful in doing so or gets rejected will likely determine if the long-term trend is bullish or bearish.
If the upward movement continues, the next closest resistance area will be at $150.
Current pattern
The daily chart shows that QNT has been following an ascending support line since its June 13 lows. The line is currently at $88 and is expected to provide support if a decrease towards it occurs.
The daily RSI supports the ongoing decrease towards the support line. It shows that QNT generated bearish divergence between July and Aug 11 (green line), an event that preceded the ongoing downward movement.
Since the line also coincides with the 0.5 Fib retracement support level, it would make sense for the price to bounce once it reaches it.
QNT wave count analysis
Cryptocurrency investor @TheCryptoKazi tweeted a chart of QNT, stating that a decrease towards $20 could occur.
While that is a possibility, it seems that the price has completed a five-wave upward movement beginning on June 14. If so, it is now correcting inside an A-B-C corrective structure.
This potential movement would also fit with the daily and weekly time frame readings, since it would indicate that the price will fall towards the ascending support line before bouncing and resuming its upward movement.
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