Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- QNT hiked 7% in the past 24 hours.Â
- QNT showed price/open interest (OI) divergence.Â
Quant [QNT] cleared all the gains made in early 2023 after retesting January lows. It was stuck between the $128.5 – $119.8 range in the first week of March.
However, it dropped below $120 and hit January’s lows of $105.8 before inflicting a rebound. In the past 24 hours, QNT rallied 7%, hitting the 23.6% Fib level ($119.8).
At the time of writing, QNT faced short-term pressure as Bitcoin [BTC] faced increased market uncertainty. A pullback retest on this support could offer new buying opportunities.Â
Read Quant [QNT] Price Prediction 2023-24
Can the bulls defend the January lows?
QNT depreciated 38.5% after dropping from $165.1 to $105.8. But inflicted a recovery before facing a hurdle at 23.6% Fib level ($119.8). The pullback could retest the $105.8 support level if the price action fails to close above the 23.6% Fib level.Â
Such a move could offer long-term bulls new buying opportunities with an entry at $105.8. The primary and secondary targets would be the Fib levels at 23.6% ($119.8) and 38.2% ($128.5).
The two possible trades could offer a risk-to-reward (RR) ratio of 1:3 and 1:4.72, respectively, if the stop loss is below $105.8. The other significant resistance lies at 50%, 61.8%, and 78.6% Fib levels.Â
Alternatively, a breach of January lows could attract aggressive selling for QNT. The selling pressure could sink QNT below $100, but the $91.8 can check the drop. Â
The RSI (Relative Strength Index) recovered from the oversold territory, showing increased buying pressure. However, it had a downtick at press time, which indicate the short-term sell pressure was witnessed at the time of writing.Â
On the other hand, the OBV (On Balance Volume) has dipped since February 20 and limited a strong recovery.Â
Active addresses and Mean Coin Age surged
As per Santiment, the 90-day Mean Coin Age rose to indicate a wide-network accumulation – evidence of a possible rally. In addition, active addresses spiked, showing improved trading volumes which could boost further recovery.Â
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Moreover, there was a price/open interest (OI) divergence as price action dropped while the OI increased. It shows the demand for QNT remained strong despite the slight correction at the time of press time – a bullish sentiment that could support the recovery.
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