Numerous market participants have taken note of the recent appreciation of ICON (ICX), which is currently ranked 98th among all cryptocurrencies. According to the weekly chart, ICX has experienced an almost 100 percent increase, representing a significant milestone for the token.
In addition, ICX is poised to reach an 11-month high this week by surpassing a significant resistance level at $0.47. The increased popularity of this token in South Korea has contributed to its recent price increase. Local merchants' confidence in the token has resulted in a 40% increase over the past twenty-four hours.
The ICX-Korean won token pair accounts for over $420 million in trading volume on Upbit, a prominent South Korean exchange.
Despite a turbulent year in 2022, ICX has gotten off to a robust start in 2023, increasing from 0.1408 in December 2022 to 0.2047 in the first three weeks of the new year. The recent surge on April 4 pushed the token's value up by over 34%, resulting in year-to-date gains of over 185%.
Let’s see the upcoming price direction of Icon (ICX) from the ICXUSDT technical analysis:
ICX/USDT Is Exhausted At The Top
Only the first week of April has passed, and ICX/USDT is trading 53% higher than the monthly open price. The bullish momentum was initiated by the sell-side liquidity grab in March, which opened an immediate bullish pressure in April.
The weekly chart shows a perfect combination of impulse and correction of a trend, which signals a bullish continuation pattern. However, the recent leg is very impulsive, which may result in a sideways correction.
In the daily chart, the current price is trading in the premium zone, which could be an alarming sign for bulls. The top of the tradable range is at the 0.4880 level, followed by the 0.1962 low. This zone's 50% Fibonacci Retracement level is near the 0.3058 support level, from where bulls may start accumulating positions.
A shift in the long-term trend is clear from the 100-day SMA as the current price is trading above it with a stable momentum. 20-day EMA is also above the 100 SMA, while a downside correction is pending as a mean reversion.
The overbought price is visible from the MACD indicator, where the current MACD EMAs are at the upper boundary level.
Based on the current price prediction of ICX/USDT, a sufficient downside correction is pending where the ultimate aim is to eliminate the imbalance below the 6 April low and test the 0.3058 support level.
However, as the broader market outlook is bullish, any bullish opportunity from the 0.2700 to 0.2356 area could offer a high probability trading opportunity, targeting the 0.5000 level.
ICX/USDT Intraday Liquidity Analysis
A bullish break of structure above the 0.3319 level topped at the 0.4880 level, which is the valid upper boundary of the current trend. Later on, a bearish pressure is seen where the 0.3372 level came with another attempt by bulls with a valid swing formation. As the current price is reaching the 0.3372 level, a valid H4 candle below this level would change the internal structure of this instrument from bullish to bearish.
Between 0.3372 to 0.25900 area has no significant areas, which increased the possibility of a 22% drop from the current swing low.
The bearish H4 candle below the 0.3372 level would make the 0.4202 level a valid top, opening a short opportunity and targeting the 0.2600 level. Moreover, breaking below the 0.2600 level with an H4 close could extend the loss toward the 0.2100 level.
Retail liquidity is available below the trendline support, where liquidity sweep and an intraday internal bullish structure break from the 0.3200 area could open a long opportunity targeting the 0.5000 level.
ICX/USDT Ichimoku Cloud Analysis
In the H4 chart, the downside possibility is visible from the Ichimoku Cloud analysis as a bearish crossover has formed in dynamic levels.
On the other hand, the future cloud is bullish, where the Senkou Span A is stable above the flat Senkou Span B. The selling pressure is also visible in the indicator window, where the current TDI level is below the 50.00 level.
Based on the H4 trend trading opportunity, an immediate recovery with an H4 close above the 0.3930 level would open an immediate buying opportunity in this pair.
Another buying opportunity may come from the 0.2800 to 0.2599 cloud support, while breaking below the 0.2356 level with a bearish H4 candle could eliminate the current bullish possibility.
Is ICX/USDT A Buy?
As of the above discussion, ICX/USDT has a pending downside correction, and investors should monitor how the price trades on the intraday support level before opening a long position.