The recent V-shaped recovery in QNT price from the $87.5 support formed the handle part of the cup and handle pattern. This bullish reversal pattern shows its neckline resistance at the $110 mark. Today’s decisive break backed by a strong volume spike calls for a further advance for a recovery rally.
- $132 supply zone may stop potential QNT rally
- Coin buyers recapture the 200 day EMA
- The intraday trading volume on Quant is $76.2 million, indicating a loss of 196.2%.
The parabolic rally in the first half of July has fully offset the May-June drop, as prices hit the $110 resistance on July 15. As a result, the QNT/USDT pair posted a 167.3% gain in just one month.
Later on, the coin chart witnessed multiple higher price rejection candles with resistance at $110, signaling short-term traders booking profits. Therefore, the selling pressure triggered a minor pullback and reduced the price by 20% before it returned to the $110 barrier.
However, this minor retracement shaped QNT price into a cup and handle pattern. Today, the price of the coin witnessed a significant entry and soared 13.4% higher to hit $112. As a result, the buyers saw a massive break of the $110 neckline resistance.
This bullish breakout triggers the cup and handle pattern to reinforce further price recovery. Also, a candle closing above this level would allow buyers to test this breached level to find a suitable base.
If QNT price shows sustainability above the $110 level, the potential rally should break the intermediate resistance at $132 and rally 27.5% to the $155 mark.
MA: the crucial EMAs (20, 50, 100 and 200) give two bullish signals i.e. a bullish crossover of the 50 and 100 day EMA and the price breakout of the 200 day EMA to give additional confirmation for $110 escape.
RSI indicator: The slope of the daily RSI jumps above the 70% mark and indicates strong bullish momentum. However, the indicator approaching the overbought region may threaten a minor correction.
- Resistance level: $96 and $110
- Support Levels: $74 and $87.6
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