Crypto currency background with various of shiny silver and golden physical cryptocurrencies symbol coins, Bitcoin, Ethereum, Litecoin, zcash, ripple.
After a solid three-day rally, the Quant price is running into overhead resistance, which could signal the start of a reversal for QNT. On the other hand, it could be just the thing to propel the Quant Token (QNT) back to this month’s highs. For now, it’s unclear which scenario will play out, but what is clear is that shortly, either the bulls or bears will claim victory. The cryptocurrency risk-off that started earlier this week forced QNT back to $250, the level it broke out from earlier this month. Since that nadir on Wednesday, the market as a whole has recovered. Bitcoin’s (BTC) 14% rally from $39,600 to $45,000 has encouraged altcoins higher. As a result, by yesterday, the Quant price had improved by 40% to $350.
However, this morning there appears to be some profit-taking creeping in, and QNT is lower by 8% to $327. Considering the performance in September, investors are undoubtedly mixed on how to position themselves. On the 4th, QNT embarked on a blistering two-day rally, jumping 150% from $180 to $471. Notably, most of that move came over 4 hours when the Quant price spiked from $250 to $470 before snapping back to $281. Since then, QNT has been trending broadly lower, signified by a series of lower highs and lower lows. Despite this, the token is finding support at the previous breakout level. Nonetheless, until Quant clears $355, I consider it in a short term a downtrend.
The 4-hour chart shows the price action has resulted in a descending triangle pattern emerging. The lower end of the formation, around $250, has been a good level of support recently. However, the descending trend from the $471 high is offering resistance at $355, countering the support.
Additionally, the increase in volume over the 8 hours as QNT approached trend resistance points to sales, reinforcing the bearish view. However, if the price soaks up the selling and advances above $355, technically, it has room to go higher. On a decisive trend breakout, a logical target is between $416-$432, where the price stalled on the 11th and 14th of September. However, because of the euphoric price action earlier in the month, I am torn between favouring either eventuality. Therefore traders should prepare for either outcome.
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