Quant (QNT) has failed to break out above the $150 resistance area on its first attempt. The short-term readings suggest an initial retracement is likely.
QNT has been one of the strongest movers in the crypto market over the past five months. Since its $40 low in June, the price has created eleven non-consecutive bullish weekly candlesticks.
Throughout this period, it has increased by 280%, leading to a maximum price of $169.90 on Oct. 9. This was the highest price in 238 days. The same day, the hourly social mentions for QNT also reached a 90-day high of 1,170 on Oct. 9, while weekly mentions were at 25,444.
Long-term breakout leads 283-day high
The weekly chart shows that the price has broken out from a descending resistance line. Prior to the breakout, the line had been in place since Sept. 2021. Breakouts from such long-term structures usually lead to significant movements, as was the case for QNT.
Technical indicator readings also support the validity of the breakout, since the RSI has moved above the 50 line (green circle), something which is associated with bullish trends.
Currently, QNT is trading inside the $150 horizontal resistance area. The area had provided support (green icons) until Jan. 2022, when it turned to resistance (red icons).
If the price manages to break out above $150, the rate of increase is likely to accelerate.
QNT upward movement shows weakness
The daily chart shows that QNT has been increasing alongside an ascending support line since June 13. It bounced at the support line on Sept. 6, when the line also coincided with the 0.5 Fib retracement support level.
Afterward, the price gradually increased and broke out from the $125 horizontal area.
While this is considered a bearish development, the daily RSI has begun to generate bearish divergence. This could be the cause of a retracement towards the $125 area, which now also coincides with the ascending support line. Due to this confluence, the area is likely to provide support.
Conversely, a breakdown below it would indicate that the upward movement has ended, and a considerable correction will follow.
Beyond short-term weakness, future looks uncertain
QNT has been one of the best performs in the cryptocurrency market since June, increasing by nearly 300%. However, it has been rejected and is showing signs of short-term weakness, which could lead to an initial retracement.
As for the future price, whether QNT breaks out above the long-term $150 resistance area or breaks down below the $120 area and the ascending support line instead will likely determine the direction of the trend.
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BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.