From yesterday’s low at $0.69 the price of ICON has increased to $0.95 at the highest point today which is an increase of 38%. Since that high, the price has retraced by 4% as its now trading at $0.92.
In today’s analysis, we are going to look into this momentum in order to determinate the longevity of this momentum behind the upward trajectory and determine whether this is a start of an uptrend after a prolonged correction or just a recovery move to the upside before new lows.
Looking at the ICX/USD daily chart we can see three things. First thing is that the price has decreased by 96% from the all-time high at $12.5 in this prolonged WXY correction ending on 14th of August at $0.4 per ICON.
Second that the descending channel resistance line has been broken as the corrective wave Y ended, but the breakout doesn’t look that powerful as the green candles are small and choppy. The third is that the RSI is at the middle of the range and not in the oversold area like you would expect.
Zooming at the 4-hour chart I have further examined the wave structure and labeled it accordingly.
As you can see the primary wave Y consists of three-wave structure – impulsive wave, minor correction and another impulse to the downside. My labelings imply that the current upward movement is only a correction of the wave 4 before the final wave 5 that will push the price to a lower low or at least to the prior low at the 0 Fibonacci level or in price terms $0.44. Take a notice at the RSI on the 4-hour chart it is pointing out overbought conditions as it’s at over 70%.
Zooming further to the hourly chart I have labeled some of the significant levels that point out some targets and projected the future price pathway. As you can see currently the price has been stopped out at the 0.382 Fibonacci level drawn from the high-low of the last wave. I would be expecting this intermediate 4 wave to end somewhere around the 0.5 Fibonacci level and the max it can go up to is to the end of the wave 1 which is have labeled with the black dotted horizontal line which is at $1.27.
The optimal target would be at $1.1 as the minor 5 ends which is why more upside is expected but only as a recovery before another drop to where the price was or even lower than that.
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