Key Takeaways
- Quant (QNT) has traded inside a symmetrical triangle for three years.
- The price bounced at its support trend line for the fourth time in April 2025.
- Will Quant break out or down from this long-term pattern, and when will it do so?
The price of QNT fell by 66% after its cycle high of December 2024, culminating with a low of $58.59 on April 7.
The ensuing bounce has created optimism that a bullish trend reversal is underway since QNT created several higher lows and broke out from a bullish pattern.
Let’s examine the charts and see if QNT can sustain this breakout and move above $100.
QNT Price Breaks Out
The daily time frame QNT analysis shows that the price broke out from a descending wedge pattern in April.
The descending wedge had existed for nearly five months, so its breakout is a decisive sign that the correction is over.
Technical indicators support the breakout. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.
Furthermore, the latter generated a bullish divergence (orange) before the breakout, enhancing it further.
If the upward movement continues, the closest resistance will be between $101 and $114, created by the 0.382 – 0.5 Fibonacci retracement resistance level.
Bearish Wave Count
The long-term wave count predicts a bearish QNT price. It suggests the ongoing rally is the final portion of the increase before the trend turns bearish.
According to the count, QNT has been in wave B of an A-B-C correction since its all-time high in 2021. Wave B is transpiring inside a symmetrical triangle.
The sub-wave count (black) indicates that Quant’s price is in wave E, the final one before a breakdown.
Since wave E often truncates, it is unclear if it will reach the triangle’s resistance trend line or end before doing so.
While the actual target for the bottom of the decline depends on wave E’s termination point, a preliminary one is near $15.
The target would give waves A and C a roughly 1:0.618 ratio and reach a long-term support level.
Alternatively, a breakout from the triangle will invalidate this bearish QNT price prediction. In that case, the Quant price could move to new highs.
New Lows This Year
The QNT price has bounced considerably since its April lows, breaking from a short-term bullish pattern.
However, the long-term outlook is still bearish, suggesting the ongoing increase is just a relief rally.
As a result, the QNT price could increase toward $101-$115, but new lows are eventually likely this year.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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