QTUMUSD finds buyers at key support level
QTUM/US Dollar Index (QTUMUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, QTUMUSD ended Saturday at 2.65 surging $0.23 (9.5%) on low volume. This is the biggest single-day gain in over two months. Today's close at 2.65 marks the highest recorded closing price since February 15th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 2.45, QTUM/USD confirmed its breakout through the previous session high after trading up to $0.21 above it intraday.
Daily Candlestick Chart (QTUMUSD as at Aug 01, 2020):
Saturday's trading range has been $0.30 (12.4%), that's far above the last trading month's daily average range of $0.16. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QTUMUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 2.36 earlier during the day, the cryptocurrency bounced off the key technical support level at 2.42 (S2). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 9, 2019, QTUMUSD gained 10.03% on the following trading day. The market was bought again around 2.36 after having seen lows at 2.36, 2.35 and 2.33 in the last three trading sessions. Obviously there is something going on at that level.
Crossing above the upper Bollinger Band for the first time since July 14th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 2.36 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for QTUM/USD. Out of 45 times, QTUMUSD closed lower 64.44% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.22% with an average market move of -3.08%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more