The recent V-shaped recovery in QNT price from $87.5 support formed the handle portion of the cup and handle pattern. This bullish reversal pattern shows its neckline resistance at the $110 mark. Today’s decisive breakout backed by a strong volume spike calls for further advancement for a recovery rally.
- The $132 supply zone may stall the QNT’s potential rally
- Coin buyers regain the 200-day EMA
- The intraday trading volume in the Quant is $76.2 Million, indicating a 196.2% loss.
The July first half parabolic rally has completely offset the May-June downfall as prices hit the $110 resistance on July 15th. As a result, the QNT/USDT pair has registered a 167.3% gain in just one month.
Later, the coin chart witnessed multiple higher price rejection candles at $110 resistance, indicating the profit-booking from short-term traders. Therefore, the selling pressure triggered a minor pullback and tumbled the price by 20% before reverting back to the $110 barrier.
However, this minor pullback shaped the QNT price into a cup and handle pattern. Today, the coin price witnessed a significant inflow and spiked 13.4% higher to reach $112. As a result, the buyers experienced a massive breakout from the $110 neckline resistance.
This bullish breakout triggers the cup and handle pattern to reinform further price recovery. Furthermore, a candle closing above this level would allow buyers to test this breached level for suitable footing.
If QNT price shows sustainability above the $110 level, the potential rally should breach the in-between resistance of $132 and surge 27.5% higher to the $155 mark.
EMAs: the crucial EMAs(20, 50, 100, and 200) give two bullish signals, ie, a bullish crossover of the 50-and-100-day EMA and the price breakout from the 200-day EMA to give additional confirmation for the $110 breakout.
RSI indicator: The daily-RSI slope jumps above the 70% mark and indicates strong bullish momentum. However, the indicator nearing the overbought region may threaten a minor correction.
- Resistance level- $96 and $110
- Support levels- $74 and $87.6
The presented content may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.