Cybersecurity has become a major theme globally following the Russian invasion of Ukraine. In a statement this week, Joe Biden warned that Russia was preparing to launch major cyber attacks in the US and other countries. This trend has helped the Quantstamp price perform well in the past few days. On Wednesday, the QSP price jumped to the highest point since February 2022. As a result, it had jumped by over 163% from its year-to-date low.
Why did QSP go parabolic?
Quantstamp is a security company that works behind the scenes to help secure leading blockchain solutions. The firm was started five years ago and has seen substantial success. For example, it claims that it has helped secure over $200 billion of assets since its founding. It counts most of the biggest companies like Toyota, Maker, Axie Infinity, Crypto.com, and OpenSea as customers. Other firms that use its network are eToro, Hedera Hashgraph, and Cardano.
The main reason why the QSP has done well in the past few weeks is that investors expect that demand for Quantstamp’s services will keep growing. Besides, the number of attacks focusing on decentralized and centralized companies is expected to keep rising. Indeed, shares of companies in the cybersecurity industry like CrowdStrike and Palo Alto Networks have all jumped.
Another reason why the Quantstamp price rose is that it completed its first security audit on the ArthSwap network. The audit looked at transaction-ordering dependence, unsafe external calls, and number rounding errors. Further, the jump is in line with the recovery of other altcoins like Kryll and Cardano.
Quantstamp price prediction
The QSP price recently formed a falling wedge pattern, which is shown in blue. In most cases, this pattern is usually accompanied by a bullish breakout, which happened recently. After soaring to a monthly high, the token has retreated quite a bit as some of the initial buyers take profit. This is a common occurrence whenever an asset goes parabolic. It also moved slightly below the important support at $0.0785, the highest point on February 15.
Therefore, the Quantstamp price will likely remain in this range for a while as buyers and sellers duel. The likely scenario is where it forms a bullish flag or pennant pattern and then resumes the bullish trend. However, a retest of the weekly high at $0.1122 cannot be ruled out.