QTUM has been on the slide over recent days, with the cryptocurrency now trading lower by around 30 percent from it’s 2020 price peak.
QTUM price analysis shows that the cryptocurrency is headed for a major test its trend-defining 200-day moving average.
Quantum medium-term price trend
The QTUM/USD pair has been falling rapidly over recent sessions after the cryptocurrency recently rallied to its highest trading level since August 2019.
QTUM price analysis suggests that bulls may move in from the cryptocurrencies 200-day-moving average in anticipation of a strong counter-rally.
The daily time frame shows that the cryptocurrency has substantial amounts of untested demand around the $4.30 level.
With this in mind, a solid bounce from the $2.00 could be the start of a medium-term rally towards the mentioned upside target.
Quantum short-term price trend
QTUM technical analysis shows that the cryptocurrency has a short-term bearish bias while price trades below the $2.38 level.
A triangle breakout on the four-hour time frame has recently occurred, placing the $2.00 support level firmly in focus.
Traders that are bullish towards QTUM/USD should note that a large head and shoulders pattern was invalidated earlier this month when buyers broke past the $1.95 level.
The $4.00 level is the overall upside target of the invalidated head and shoulders pattern. Despite the latest decline, the $4.00 level still has a strong probability of being reached.
Overall, conservative traders may wait for price to stabilize above the $2.38 level before initiating fresh buy positions.
Quantum technical summary
QTUM technical analysis indicates that the cryptocurrency could fall towards the $1.95 to $2.00 level before recovering. The $4.00 level remains a valid medium-term upside target.
