- ICON price looks exhausted after a 105% upswing since September 7.
- The bearish divergence indicates that a 20% correction to $1.607 is around the corner.
- If ICX produces a decisive close above $2.222, it will invalidate the bullish thesis.
ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.
ICON price approaches inflection point
ICON price set up three higher highs since September 6, indicating a gradual but bullish outlook. However, during the same period, the relative strength index (RSI) formed lower highs. This development is referred to as bearish divergence and often leads to a correction. Considering how ICX has more than doubled since September 7, this correction would seem obvious. However, a confirmation of the bearish outlook will arrive after ICON price produces a decisive 12-hour candlestick close below the $1.995 support floor.
Such a move is likely to trigger a 20% downswing to the $1.607 foothold. The bulls can try to make a comeback here, but failing to do so coupled with an increased selling pressure might exacerbate the crash and push ICX down to $1.393.
ICX/USDT 12-hour chart
On the other hand, if ICON price bounces off the $1.995 support barrier, it will indicate that the buyers are forcing the bears’ hand. In such a case, the bulls need to muster the strength to produce a convincing 12-hour candlestick close above $2.215 to set up a higher high. This development has a higher chance of invalidating the bearish thesis.
In such a case, ICX could rally 15% to tag the immediate resistance level at $2.546.