Over the weekend, Bitcoin [BTC] fell by 5.6% from $91.4k to $86.3k. The latest jobs report showed 119,000 new jobs were added in September. Other data releases were cancelled because of the prolonged government shutdown. Calls for a crypto bottom might be premature.
Quant [QNT] has been noticeably affected by the market-wide volatility. In a recent AMBCrypto report, a major supply zone just under the psychological $100-mark was highlighted as a key resistance.
On Sunday, QNT’s price rose to $105, suggesting that the next bullish phase may be underway. The market correction in recent hours soon pushed Quant prices back within this supply zone.
Technical analysis
Source: QNT/USDT on TradingView
The drop below the former higher low (orange) at $85.52 meant that the weekly QNT structure was bearish. The swing points at $58.6 and $135.6 were the long-term levels of interest.
The rally last week appeared to have tagged the supply zone at and just above $100, with the same in the process of retracing at press time.
Source: QNT/USDT on TradingView
On the 1-day chart, the price structure seemed bullish. Moreover, the 78.6% Fibonacci retracement level at $75 had been defended in November. As a result, the latest rally was able to make a new higher high.
However, the resistance at $105 from September was not overcome – A worry for swing traders. It may be possible that the imbalance (white box) and the 61.8% retracement level at $88 can halt any further price slides.
Indicator health check
The OBV on the weekly timeframe has been trending lower since August, a trend also visible on the 1-day chart. However, the recent spurt in buying volume made a new high. If this demand is sustained, the chances of a QNT recovery from the latest setback at $105 would be good.
The RSI seemed to be on the verge of flipping bullishly on the weekly chart and was steadily bullish on the daily chart. Overall, the indicators seemed to favor further upside after the current reset.
Key levels to watch out for
Putting the analysis together, the $110.8-level is an important weekly resistance. A breach of this level would be a sign of a bullish weekly structure. This week, a dip to $85.7-$88 can be expected, and buyers are likely to prevail.
A drop below $85 would be a sign that the bears might be too strong, and swing traders would have to wait to see the reaction at the $75 Fib retracement – A level which had been pivotal in November.
Final Thoughts
- QNT has a bearish structure on the weekly chart and a bullish structure on the daily chart.
- The buying pressure over the past week has been strong. If sustained, QNT bulls are likely to defend the $85-support zone and force a rally towards $135.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
