Quant (QNT) has been declining since Aug 8 and could potentially complete its correction near $88.
The QNT was declining below a descending resistance line since reaching an all-time high of $429.69 in September. The downside movement reached the June low of $40.60.
Since then the price has been moving upwards. It broke through the descending resistance line on 19 June. The upward move validated the $45 horizontal area as support.
The most interesting development comes from the weekly RSI, which is in the process of moving above 50 (green circle). Whether it succeeds in doing so or is rejected will determine whether the longer term trend is bullish or bearish.
If the upward move continues, the next nearest resistance area will be at $150.
current pattern
The daily chart shows that QNT is following an ascending support line since its June 13 lows. The line is currently located at $88 and it is expected to provide support if it turns lower.
The daily RSI is supporting the ongoing downside movement towards the support line. This shows that the QNT generated a bearish divergence between July and August 11 (green line), an event that preceded the ongoing downward movement.
Since the line also coincides with the 0.5 Fibonacci retracement support level, it makes sense that the price will bounce back once it reaches it.
QNT waveform count analysis
cryptocurrency investors @TheCryptoKazi Tweeted a chart of QNT, suggesting a drop to $20 is possible.
While this is a possibility, the price seems to have completed the five-wave upward movement that began on June 14. If so, it is now happening right inside the ABC corrective structure.
This potential movement would also fit in with the daily and weekly time frame readings, as it would indicate that the price would fall towards an ascending support line before moving upwards and resuming.
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