Quant (QNT) has already broken a short-term descending resistance line, but is still trading below a long-term line.
QNT has been falling below a descending resistance line since hitting an all-time high of $429 on September 11, 2021. The downward move led to a low of $48.81 on May 12, 2022.
However, the price rebounded afterwards and validated the $65 horizontal area as support. It has not closed below this level since July 2021.
Despite the rebound, the price has yet to decisively break through the descending resistance line. Until it does, the trend cannot be considered bullish. If it breaks out, the next closest resistance would be at $145.
Additionally, the weekly RSI is below 50, another sign of a downtrend.
QNT Enthusiast @its_cashflow tweeted a chart from QNT, which shows a potential fractal that would eventually take the price to a new all-time high.
Since the price has yet to break the descending resistance line, there are no signs to suggest this move will occur.
The daily chart offers a more bullish outlook for several reasons. First, it shows the creation of a bullish hammer candlestick (green icon) on May 12. The fact that the candlestick is created inside a long-term support zone further increases its importance.
Second, the daily RSI has generated a significant bullish divergence (green line) and the divergence trend line is still intact. The indicator is also close to moving above 50, in what would be considered a bullish sign.
If the upward move continues, the nearest resistance zone would be at $90.20. This is the resistance level at the 0.382 Fib retracement when measuring the most recent decline.
Short term QNT movement
Finally, the two-hour chart shows that QNT has already broken out of a descending wedge and validated it as support thereafter (green icon).
If both parts of the increase are of the same magnitude, it would lead to a QNT value of $92, also coinciding with the resistance area described earlier.
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