ICON (ICX) is approaching the 237 day resistance, will it break out?
ICON (ICX) could soon make one more attempt to break above its short-term pattern, possibly breaking above its long-term pattern.
ICX has been falling along with a descending resistance line since March 31st. So the line has existed for 237 days.
Since October 5th, the token has been rejected by this line four times and also formed the resistance area of $ 2.55.
The resistance levels become weaker with every touch. Therefore, based on this assessment, a possible outbreak is to be expected.
However, technical indicators offer a very neutral outlook.
The MACD, formed by the short and long-term moving averages (MAs), is falling, but remains in positive territory. This means that the short-term MA is slowing down compared to the long-term MA, but is still moving faster.
The RSI, a momentum indicator, is right at the 50 line. This is a sign of a neutral trend as movements above and below the 50 line are benchmarks for an upward / downward trend.
Hence, it is necessary to look at the lower time frames to determine if ICX is having a breakout.
ICX / USDT daily chart | Source: TradingView
Trader @TheEuroSniper has outlined the weekly ICX chart showing that the token is trying to hit a new year high. The horizontal resistance roughly coincides with the descending resistance line, further consolidating this level.
The source: Twitter
Short term outbreak
The six hour short-term chart is bullish, suggesting a breakout is likely.
ICX has been trading in an ascending triangle since September 30th. The ascending triangle is considered a bullish pattern.
In addition, today’s rally was accompanied by a bullish divergence in both the RSI and the MACD. This means that the fall in prices will not be accompanied by a fall in technical indicators. This event is usually preceded by an uptrend reversal.
Therefore, the price could move into the resistance area and then break out.
ICX / USDT 6-hour chart | Source: TradingView
The most likely count shows that ICX is on the second wave of a 5-wave bullish pulse (yellow). Wave two is a correction, which means the uptrend is likely to resume once it ends.
The exact shape of the second wave is still unclear. It is possible that ICX is trading in an ascending parallel channel. If so, the price is currently near the support line of the channel.
Therefore, after another touch, the uptrend will continue. Alongside me, this move also caused a breakout above the long-term descending resistance line.
You can see the price of ICX Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto