Quant (QNT) Price Rebounds 20%, Targeting $90 After Weekend Recovery

Key Takeaways

• Quant (QNT) trades above a long-term horizontal support area at $60.
• The altcoin was one of the biggest gainers over the weekend.
• Can QNT sustain its rally during the week, possibly reaching $80?

The Quant (QNT) price has recovered faster than the rest of the crypto market following its Aug. 5, low. The price emphasized this increase by creating a higher low on Sept. 6 and successive daily bullish candlesticks afterward.

However, QNT is still at risk of breaking down from a long-term horizontal support area. Will this bounce take the price out of risk’s way, or will QNT lose its momentum and break down from the support area instead?

Quant Returns to Long-Term Support

The QNT price has decreased under a descending resistance trend line since September 2022. The trend line recently caused two rejections in January and March 2024.

QNT fell faster after the final rejection, culminating with a low of $50.25 on Aug. 5. The price has bounced since, creating a higher low and a bullish candlestick last week.

Whether the Quant price resumes the bounce or breaks down is critical for the future trend. This is because QNT hovers inside the $60 horizontal support area, which has existed since June 2021.

This is the final support before $30, so a breakdown could further accelerate the decline.

While the Relative Strength Index (RSI) and MACD show positive signs, as noted by the increasing RSI and near bullish cross (black circle) in the MACD, the indicators are still well below their bullish thresholds. Also, the lack of a bullish divergence in either metric does not bode well for the chances of a reversal.

As a result, looking at a lower time frame is needed to determine the future trend direction.

Double Bottom Could Trigger Increase

A closer look at the daily time frame chart suggests the price of QNT will increase toward the resistance trend line at $95. This is because the price has created a double bottom, a bullish pattern. The ongoing bounce started after QNT completed its second bottom.

The RSI and MACD (green) generated bullish divergences during the bottoms to further enhance this pattern.

So, an increase toward the resistance trend line at $90 is the most likely outlook.

Since the double bottom occurs in the daily time frame, it is unclear if QNT will break out or get rejected by the trend line once it reaches it.

Incoming QNT Price Bounce

Because of its double bottom pattern inside a long-term support area, the continuation of the QNT price bounce is likely. This could take the price to a long-term resistance trend line at $90. Then, whether QNT breaks out can determine the long-term trend’s direction.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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