ICON (ICX) Technical Analysis: Possible Bullish Breakout in the Short-Term

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ICON (ICX) has been held in a flat trajectory for nearly two months, after recovering from a long decline that unraveled over -84% of its value from May to mid-August. In the last few weeks there has also been a marked decline in volatility and momentum, with ICX oscillating within a small 2,000 Sats range between the 0.5 and 0.236 Fibonacci levels (11,130 Sats, 9,310 Sats respectively).

Could this be the bottom for ICX, and could we start seeing South Korean support return to the asset once 2018 Korea Blockchain Expo finishes tomorrow? Let’s take a look.

On the 1D ICX/BTC chart, we can that the price action has been traveling sideways since September 6th, after candles fell through the 0.5 fib support during a correction and into the current channel (green box). Inside this channel we also have an interior support at the 0.382 fib level (10,320 Sats), which is propping the bulls up right now while they recover from the recent selling pressure. 

The reduction in volatility over the last few weeks can be seen clearly on the Bollinger bands, as the upper and lower bands pinch closer together. Commonly, periods of high volatility (expanding bands) follow after periods of constriction (closing bands). Because of this, we should anticipate bullish or bearish momentum to pick up sometime soon.

So which way will it go?

Looking at a number of indicators over 1D and 1hr candles we can forecast the broader and closer direction that the asset could be heading toward over the next few weeks out to a month.

  • On the Ichimoku indicator over 1D candles, we can see that for the first time since April 10th, ICX has started to close in on the resisting kumo (red) stretched out in front of the candles. A convergence through this cloud will give us a bullish reversal signal on this indicator, but for now the 0.5 fib resistance is proving difficult to overcome.
  • On the 1D MACD, we can also see that the 12MA has broken back over the signal line for the first time since it fell through in May this year. This is another promising bullish signal that buying momentum is beginning to return to this asset.
  • Looking at the RSI over 1hr candles, we can see that ICX was recently oversold but is starting to recover back into the index channel, no doubt as short-term investors trade the bounce.
  • The CMF indicator is also showing a marked improvement in buying pressure over 1hr candles, with the line starting to spike back towards the zero line above.

ICON (ICX) Price Targets

All price targets are set from the asset’s current value at 10,240 Sats.

Price Target 1: 10,627 Sats resistance (3.78% ROI)

Price Target 2: 11,131 Sats (0.5 fib level) (8.70% ROI)

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