Key Takeaways:
- Quant price have spiked nearly 50% in Jan 2023.
- However, bearish chart patterns indicate QNT price rally might be heading for a reversal.
NEW DELHI (CoinChapter.com) — Distributed ledger technology service provider Quant’s native token, QNT, saw its price rise with the wider crypto market, surging nearly 50% in Jan to a daily high of $156.6 on Jan 24. After that, however, QNT price might be heading for a trend reversal.
In detail, a descending trendline connecting swing highs and a horizontal trendline joining swing lows form the pattern. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
Once the Quant token exhausts the pattern, QNT price risks a fall to $50.2, a drop of nearly 68% from current levels, price last reached $50 in Jun 2022 when it charted its all-time low.
The Quant coin price is currently challenging the descending trendline resistance of the triangle.
QNT Price Moving Inside Ascending Parallel Channel
Meanwhile, the QNT price is currently moving inside an ascending parallel channel since Dec 20. The pattern often witnesses corrective movements. With the Quant token near the upper trendline of the ascending channel, traders might be gearing up for a correction in price.
QNT token rose 10.3% to form a high near $156.6 on Jan 24 before paring gains, marking a two-month high for the Quant token. Furthermore, the bull run has pushed the Quant token’s relative strength index into the overbought region, with a value of 72.51 on the daily charts.
Also Read: BNB Price Prediction: Technicals Suggest Drift Incoming Towards $360
Overbought RSI levels often forecast a bearish trend reversal for an asset, which is why traders consider the pattern a sell signal.
Given the multiple bearish cues, the QNT price might end up testing support near $146. Moreover, breaching below the immediate support could force the Quant token to drop to support from its 20-day EMA (red wave) and the parallel channel’s lower trendline near $133.
On the other hand, a continued bullish rally might help QNT’s price break above the trendline resistance of the channel near $157. Furthermore, invalidating the ascending channel would help QNT break above the bearish triangle setup.
Hence, a break and hold above immediate resistance might provide QNT price the momentum needed to target resistance near $173.3 before downside corrections pare gains.
