Quant (QNT) price analysis: Will the rally reverse?

Quant may rally to $150 in the short term

A mobile phone displays the logo, name and ticker for Quant (QNT)                                 
Will investors be enthused by the new upgrades to Quant’s Overledger operating system? – Photo: Shutterstock

Quant has been in a strong uptrend since bottoming out in June. After a minor correction, the bulls are attempting to resume the up-move as of 11 August 2022.

The Quant network announced the release of Overledger 2.2.11 on 22 July which introduced a new connection to the enterprise-grade permissioned blockchain platform, Hyperledger Fabric v2.2. 

That was followed by the release of Overledger 2.2.12 on 4 August. This new release “provides users the ability to create QRC-721 non-fungible tokens and deploy them onto the Ethereum, Polygon and XDC mainnets”, according to Quant chief technology officer Peter Marirosans.

The investors seem to be enthused with the interoperability feature of Quant, which may prove to be an important tool to connect various platforms in the metaverse. 

Will the demand sustain at higher levels? Could QNT go up further or will it succumb to profit-booking? Read the QNT price analysis to find out what the charts suggest.

Quant technical analysis: Weekly chart

Quant weekly price analysis chart for 11 August 2022
Quant weekly price analysis chart for 11 August 2022 – Credit: Currency.com

QNT’s price plunged from $428.45 in September 2021 to $40.41 on 13 June of this year. Since then, the QNT/USD pair has made a sharp recovery and is moving toward the overhead resistance of $150. The bears are likely to pose a strong challenge at this level.

If the pair does not give up much ground from $150, it will suggest that traders are not hurrying to book profits as they anticipate the up-move to continue. The relative strength index (RSI) in the positive territory indicates an advantage to buyers.

A break and close above $150 will complete a V-shaped bottom pattern that could signal the start of a new uptrend. The pair may thereafter rally to the 50% Fibonacci retracement level of $201.89 and then to the 61.8% retracement level of $237.84. The bears are again expected to mount a strong resistance in the above zone, but if the bulls flip $150 into support, it will suggest a potential trend change.

Quant technical analysis: Daily chart

Quant daily price analysis chart for 11 August 2022
Quant daily price analysis chart for 11 August 2022 – Credit: Currency.com

QNT’s price has been rising inside an ascending channel pattern suggesting that the bulls have the upper hand. However, the RSI has risen into the overbought territory, indicating that a minor correction of consolidation is possible in the near term.

The first level to watch on the downside is the support line of the channel. A strong rebound off this level will keep the positive sentiment intact and increase the possibility of a rally to the overhead resistance at $150.

On the other hand, if the price turns down and breaks below the channel, it will suggest that short-term traders may be booking profits. That could pull the price down to the psychological level of $100 and then to $88. This zone is likely to attract strong buying by the bulls. 

If the price turns up from this zone, the buyers will again attempt to clear the overhead resistance. If they succeed, the pair may form an inverse head and shoulders reversal pattern. This bullish view will invalidate on a break below $88.

Quant: Buy or sell at current levels?

Quant has been in a strong recovery that could carry it to the overhead resistance at $150. This level may act as a major hurdle but if bulls push the price above it, Quant’s price analysis suggests a rally to $200 is possible. Conversely, a break below the channel could sink the pair to $100.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision. 

Further reading

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