ICX’s Bullish Reversal Pattern Suggests a Breakout Awaits

The pattern created is a descending wedge. The possibility of a breakout was mentioned by well-known trader @Scottmelker, who outlined an ICX chart suggesting that the price is likely to break out in the near future. In order to arrive to the conclusion, he used both a long-term chart (weekly time-frame) and a shorter-term one (daily time-frame). However, he has not given a target for the possible ensuing upward movement.

$ICX

Finally looks ready for continuation to the upside. Daily on the left, weekly on the right for context. Price broke the major black resistance and retested as support. Now doing the same from the blue descending wedge. I'm in. pic.twitter.com/JPejDpSnX5

— The Wolf Of All Streets (@scottmelker) March 30, 2020

Let’s take a closer look at the ICX price and determine if it is likely to break out as well as its possible target if it indeed does break out.

Descending Resistance Line

The ICX price has been following a descending resistance line since Oct. 15, 2018. The price is currently right at this resistance line, validating it for the fifth time. ICX has been making numerous attempts at breaking out for the past eight weeks, but they have all been unsuccessful, with the exception of wick movements above the line. The price has failed to reach a weekly close above this area. The price is currently only slightly above the support area at 2,700 satoshis. In addition, the weekly RSI seems to have bounced at the 50-line, a sign that the price wants to continue its upward movement. Therefore, the weekly chart indicates that a breakout could be near.

Descending Wedge

In the daily chart, the price is indeed trading inside a descending wedge, currently being very close to the  projected end of the pattern. The wedge is considered a bullish pattern, and since it is transpiring after an upward move, it would make sense to act as a continuation pattern. Further solidifying this possibility, the price seems to have found support above the 0.618 fib level of the entire increase, a likely level for a reversal. If the price breaks out, the first area that is likely to provide resistance is found at 4,400 satoshis. A breakdown below the support line of the wedge would invalidate this possibility.

To conclude, the ICX price is trading inside a descending wedge. A breakout from this pattern is expected that could take the price all the way to 4,400 satoshis.