ICON (ICX) Bounces at Critical Support Level

ICON (ICX) Price Highlights

• There is support at 3,000 satoshis.
• A golden cross transpired on Feb 6.
• There is resistance at 4,200 and 5,500 satoshis.
• The short-term RSI has generated bullish divergence.

Full-time trader @AltcoinSherpa outlined an ICX chart that shows the price resting at the 3,500 satoshi support area, which is also the 0.5 Fib level of the entire increase. However, he does not believe the support will hold, rather suggesting that the price will fall to 3,000 satoshis.

$ICX #ICON $ALTS: 4500 was indeed a region of interest and price is pulling back. Tbh, when price generally does this, I don't expect the .50 area to hold (3500 sats) and I expect a test of the 3k sats region. Always look for confluence w. other S/R lvls too before trading IMO pic.twitter.com/tsnR31RQne

— Altcoin Sherpa (@AltcoinSherpa) February 25, 2020

Current Support

Since the tweet, the price has actually decreased below the 3,500 satoshi area and reached 3,000 satoshis, validating the prediction made in the tweet. Besides being the 0.618 Fib level of the entire increase, this is also a previous resistance level, making it a very suitable place to initiate a reversal. Currently, the price is creating a Doji candlestick, which shows indecision in the market. The daily chart shows a bullish cross between the 50 and 200-day moving averages (MA) that transpired on Feb 6. The recent decrease has caused the price to validate the 50-day MA, solidifying the current support. In addition, the daily RSI is currently right at the 50-line, suggesting that the longer-term trend has yet to turn bearish. This makes the current support area a make-or-break level since a decrease below this would cause the RSI to drop below 50, wiping out significant support and confirming that the price is in a bearish trend.

Future Movement

In the short-term, we can see that the price might have already reversed its trend and has begun to move upwards. The RSI has generated bullish divergence inside the oversold territory and completed a failure swing bottom afterward. This suggests that the price will move upwards. The closest resistance area is found at 4,200 satoshis. The weekly chart gives us a possible long-term target found at 5,500 satoshis. The weekly RSI is above 50, after trading more than 18 months below this level, suggesting that the trend has reversed and the long-term trend is bullish. To conclude, the ICX price has reached a significant support area which will likely reverse the current bearish trend. The price is expected to move towards the 4,200 and eventually 5,500 satoshi resistance area.