Icon Technical Analysis: (ICX/BTC) Better Late Than Never. Support Starting To Respond To ICONest Platform Launch

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Bad timing last week meant that the new ICONest token platform, that went live 2 days ago, has yet to see support respond to this latest development. In the wake of the recent bear market, the community are still waiting for a bullish surge to take over ICX.

But now that the dust has settled, things look like they’re about to move.

In the 1D chart above, ICX has been uptrending toward the strong resistance at the 0.5 fib leve/ 5,320 Sats which has already been unsuccessfully tested once over the past 2 weeks. 

During the ICONest launch on May 11th, we can see that buying sentiment improved slightly as the asset was lifted off the lower uptrending support (red line), but did not reach its full potential as a result of BTC’s poor performance that day, effecting the rest of the market.

Now as the price action begins to consolidate along the 0.618 fibonacci resistance we should expect this area to flip into a support level, which will give ICX a strong level to begin building towards the 0.5 fib level above.

Looking at the Accumulation/ Distribution indicator we can see a positive cash flow gradually rise in the token’s favour as investor support is continuing to grow.

Further bullish confirmations come from:

–  22 EMA holding out above the 50 EMA

–  Shrinking selling candles below the MACD signal line, which gives us an early indication of bullish momentum gathering.

–  On the stochastic RSI, Icon was oversold but now positively converging back into the central channel.

On the Ichimoku indicator (below) we can see projected rising, support kumo cloud (yellow) ahead of the price action. The Tenkan-Sen (blue line) is, however, very close to the Kijun-Sen (red line) but we have yet to see these two lines bearishly crossover.

Once the candles hold out clear above the 0.618 fib level, we could see some further consolidation into an ascending triangle pattern against the 0.5 fib level before breaking through.

ICON (ICX) Price Targets

Price Target 1: A retracement to the 0.5 fib level from the current 0.618 fib level to yield a 16.81% ROI.

Price Target 2: The 0.382 fib level at 6,068 Sats. After passing the 6,000 Sat mark we should expect to see some strong bearish opposition on the orderbook as investors take profit at this stage.

Overall this would deliver a very nice 32.90% gain from the 0.618 fib level.

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