$QNT Today is not an ordinary bullish engulfing candle. During the day, it touched 373 USDT and then returned back to the 237 area. At the higher levels, the divergence is more worth watching than the magnitude of the rally itself.
The Binance spot page shows: QNT/USDT is +31.08% over the past 24 hours, with approximately 319 million USDT in 24h trading volume. The increased volume on the daily chart is obvious, but the pullback left by the final candlestick is just as obvious.
I’ll first look to see whether the trading volume after this sharp run-up continues to attract follow-through. If price holds sideways at high levels and the pullback doesn’t expand, it indicates that funds are still digesting the move. If volume quickly fades back and price keeps giving up gains, then today’s strength will need to be reassessed.
For spot market observation only—no trading instructions. There’s risk in the scenario where we see a rise followed by a pullback, changes in liquidity, and potential reversals in the news. Don’t forget risk just because you see one big K-line.
When this kind of fast rally and pullback happens, do you treat it as strong turnover, or do you wait until it becomes clear which direction it’s headed?
$QNT #BinanceSpot #Market Watch
The Binance spot page shows: QNT/USDT is +31.08% over the past 24 hours, with approximately 319 million USDT in 24h trading volume. The increased volume on the daily chart is obvious, but the pullback left by the final candlestick is just as obvious.
I’ll first look to see whether the trading volume after this sharp run-up continues to attract follow-through. If price holds sideways at high levels and the pullback doesn’t expand, it indicates that funds are still digesting the move. If volume quickly fades back and price keeps giving up gains, then today’s strength will need to be reassessed.
For spot market observation only—no trading instructions. There’s risk in the scenario where we see a rise followed by a pullback, changes in liquidity, and potential reversals in the news. Don’t forget risk just because you see one big K-line.
When this kind of fast rally and pullback happens, do you treat it as strong turnover, or do you wait until it becomes clear which direction it’s headed?
$QNT #BinanceSpot #Market Watch
