A weekly timeframe analysis of ICON (ICX) shows bullish signs. On the daily time frame, however, it is trading inside a corrective pattern.
A high price of $3.20 reached in March 2021 has been followed by a decline for ICX. Before resuming its downward movement, it created a slightly lower high in November.
A parallel descending channel has been containing the decline since then. A breakout from such channels is expected because they contain corrective structures. Since June, price has been increasing, reclaiming midline in August after validating the support line.
Additionally, the weekly RSI also broke out of its descending resistance line, potentially signaling a bullish reversal.
It is at $0.45 that the channel’s resistance line lies. A break out of the current range would lead to a resistance at $0.65, a previous support level.
*Note: The graph below uses a logarithmic chart to illustrate large price fluctuations
Short-term ICX movement
In a tweet, cryptocurrency analyst @Cryptodude999 stated that ICX was trading within a short-term range with resistance at $0.33.
The price has recovered the $0.33 area since the tweet, breaking out from it at the beginning of August. Ascending parallel channels, however, have rejected it (red icon).
Corrective movements are contained in such channels, as outlined previously. There was a long upper wick created by ICX on Aug 15 after being rejected by the resistance line of this channel (red icon).
Even though the price has been rejected, the RSI is above 50 and it is trading above the $0.33 horizontal support level.
In order to confirm that the trend is bullish, the trend must break out of the channel and break through the $0.415 resistance area. On the other hand, if the price decreases below $0.33, the prices would be lowered.
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