ICON / USD Technical Analysis: Flying Colors
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- ICON is bullish in the short-term with a strong upside move currently underway
- The four-hour time frame shows a bullish inverted head and shoulders pattern being triggered
- The medium-term outlook is neutral, with the cryptocurrency attempting a major range break on the daily time frame
ICON / USD Short-term price analysis
In the short-term, ICON is bullish with the four-hour time frame showing that a strong technical breakout is underway.
Price has broken above the neckline of a bullish inverted head and shoulders pattern, with technical indicators on the four-hour time frame remaining bullish.
Overall, ICON has continued to advance since early February, with traders buying any dips lower; traders should carefully monitor four-hour price closes above the bullish inverted head and shoulders pattern.
ICX / USD H4 Chart (Source: TradingView)
Pattern Watch
The overall upside objective of the inverted head and shoulders pattern on the four-hour time frame would take the cryptocurrencies to levels not seen since November 19th, 2018.
MACD Indicator
The MACD indicator on the four-hour time frame is currently generating a bullish trading signal.
Relative Strength Indicator
The RSI indicator is also bullish, although it is close to moving into overbought territory.
ICON / USD Medium-term price analysis
ICON has a neutral trading bias in the medium-term, with the cryptocurrency starting to show signs that a bullish breakout maybe beginning.
Traders should note that the cryptocurrency is starting to edge above a sideways price channel that the ICX / USD pair has been consolidating in since November last year.
If bulls can hold price above the sideways price channel, we should expect an advance towards the cryptocurrencies trend defining 200-day moving average.
ICX / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should closely monitor daily and weekly price closes above or below the sideways price channel, as it will provide a strong indication of the ICX / USD pair’s likely path over the medium-term.
MACD Indicator
The MACD indicator is bullish on the daily time frame and shows significant scope for further upside if the upside breakout continues.
RSI Indicator
The RSI indicator on the daily time is bullish, although it is starting to approach overbought territory.
Conclusion
ICON shows tremendous bullish potential on both the four-hour and daily time frames; if buyers can continue to push the cryptocurrency higher, it is extremely likely we will see a test of the ICX / USD pair’s 200-day moving average.
If a false breakout does occur and the cryptocurrency reverses course, traders should expect a further decline towards the middle of the sideways price channel on the daily time frame.
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