Qtum Price Analysis: QTUM Trapped in a Narrow Range — Can the Bulls Keep the Market Above $4?

Qtum has suffered an 11% price decline over the past 24 hours of trading, bringing the week-on-week percentage change to +9.12%. The cryptocurrency is currently trading at $4.46, at the time of writing — trading not so far away from the yearly low price of $3.52.

Qtum was created when the founders launched the ICO in March 2017 which went on to raise around $15 million. The Singapore-based blockchain company aims to bridge the gap between Bitcoin and Ethereum-based tokens by increasing the interoperability between them both. They also wish to make smart contracts much easier to create and execute, as well as making them much more secure.

Qtum is built on the Bitcoin codebase but the team has added layers to the code, which allows the Ethereum Virtual Machine to connect to the blockchain so smart contracts can be run. The integration of both types of blockchains in one allows Qtum to benefit from developments from both cryptocurrencies.

For more information on Qtum, we recommend you read our “What is Qtum” guide.

Qtum is currently ranked 25th in terms of overall market cap across the entire industry. The 15-month old coin currently has a total market cap of $396 million after suffering a 38% price decline over the past 30 trading days.

Let us continue to analyze price action for Qtum over the long term.

Qtum Price Analysis

QTUM/USD – LONG TERM – DAILY CHART

Analyzing price action from the long-term perspective above, we can see that the market had experienced a significant bullish run when price action started from a low of $2.60 on December 16, 2017 and extended to an all-time high of $85.82 on January 7, 2018. This was a price increase totaling 1,350% from low to high.

We can see that after placing the all-time high price action began to decline, originally finding support at the .618 Fibonacci Retracement level priced at $35.07 during January. This Fibonacci Retracement is measured from the entire bullish run above.

The market continued to decline to find support at the .786 Fibonacci Retracement priced at $21.25 in February 2018, and the .886 Fibonacci Retracement level priced at $13.02 in March 2018. The support at $13.02 held for a few weeks before the market broke below during the first week of June 2018.

Price action had continued to decline until finding support at a long-term downside 1.272 FIbonacci Extension level priced at $3.78 during August 2018. We can see that the market has found significant support at this level throughout the month.

Let us continue to analyze price action a little closer and highlight any potential support and resistance areas.

QTUM/USD – SHORT TERM – DAILY CHART

Analyzing the market from the short-term perspective above, we can see that the recent downtrend had found further support at a shorter-term downside 1.414 Fibonacci Extension level (draw in blue) priced at $4.00.

The market has rebounded from this support level, and has been trapped within a range bound condition over the past 2 weeks. The range is defined by the downside 1.272 Fibonacci Extension level (drawn in blue) priced at $5.12 for the upper boundary, and the downside 1.414 Fibonacci Extension (drawn in blue) priced at $4.00 for the lower boundary.

In the scenario that the bears push price action below the $4.00 lower boundary handle, we expect immediate support to be located at $3.47 which is another downside 1.618 Fibonacci Extnesion level (drawn in purple). Further support below this can then be expected at the psychological round number handle of $3, followed by the short-term downside Fibonacci Extension level (drawn in blue) priced at $2.40.

Alternatively, if the bulls can push the market above the upper boundary of the trading range at $5.12, we expect immediate resistance to be located at the $6.00 handle, followed by the downside 1.414 Fibonacci Extension level (drawn in purple) priced at $6.29. Further resistance above this level is then expected at the 1.272 Fibonacci Extension level (drawn in purple again) priced at $8.26.

It is important to highlight that this level will require significant momentum to overcome due to the 100-day moving average which is hovering close within this price area.

The technical indicators are currently neither favoring the bulls nor the bears as the RSI trades in neutral territory along the 50 line. If the RSI can stay above the 50 handle, we can expect the bullish momentum to continue. If the RSI breaks below 50, we can expect the bears to re-enter the market and take control once again.

Let us continue to quickly analyze price action relative to Bitcoin over the long term.

QTUM/BTC – LONG TERM – DAILY CHART

Analyzing the market from the long-term perspective above, we can see that Qtum had experienced a significant bullish run when price action started from a low of 619 SATS on December 7, 2017 and extended to an all-time high of 4,996 SATS on January 7, 2018. This was a price increase totaling 740% from low to high.

The market went on to roll over after placing this high, initially finding support at the .5 Fibonacci Retracement level priced at 2,800 SATS in February 2018. We can see that the bears were in control for the majority of the trading year, dropping price action through all of our Fibonacci Retracement levels until the market recently completed a 100% FIbonacci Retracement of the bullish run highlighted above.

Let us continue to analyze price action a little closer to highlight any potential support and resistance areas.

QTUM/BTC – SHORT TERM – DAILY CHART

We can see that the support at the 100% Fibonacci Retracement level was bolstered by a series of downside Fibonacci Extension levels, most notably the downside 1.414 Fibonacci Extension level (drawn in blue) priced at 608 SATS.

The market has been trapped within a range between the downside 1.272 Fibonacci Extension level priced at 814 SATS as the upper boundary, and the downside 1.414 Fibonacci Extension level priced at 608 SATS as the lower boundary.

In the event that the bears push price action below the 608 SATS support handle, we expect immediate support to be located at a short-term downside 1.414 Fibonacci Extension level (drawn in purple) priced at 504 SATS. The next level of support will be the 1.618 Fibonacci Extension level (drawn in purple) priced at 353 SATS.

Alternatively, if the bulls can push price action back above the 814 SATS handle, we expect immediate resistance to be located at the previous long-term .886 Fibonacci Retracement level priced at 1,098 SATS. This area of resistance will require significant momentum to overcome due to the 100-day moving average hovering within the same price range.

Related: 7 Projects on QTUM to Get Excited About

1 Comment

  • Rob Feifer
    Posted August 31, 2018 4:14 am 0Likes

    How can I contact you? Great update with strong validation and support.

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