Key Takeaways:
- Icon’s native token ICX broke out of a bullish technical pattern.
- The platform shared testing details for its BTP 2.0
NEW DELHI (CoinChapter.com) — Blockchain platform Icon’s native token, ICX, price broke above a bullish technical pattern called the falling wedge.
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that would converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Thus, confirming the pattern could see the Icon token reach $1.55, rising 316% in the process.
Since breaking out of the pattern, the Icon token rose by 65% to a daily high of $0.412 on April 4.
ICX Price Rally Raises Overbought RSI Fears
ICX’s price jumped more than 34% on April 4 to form a daily high above $0.4 for the first time since June 2022. In addition, the rally helped ICX’s price record over 185% YTD gains. However, the relative strength index has become overbought for ICX, currently clocking at 78.85 daily.
Overbought RSI levels often precede an asset’s trend reversal, which is why traders could consider it a sell signal. Furthermore, long upper wicks on the Icon token’s daily candles highlight bears are aggressively defending the upper price levels.
If more sellers enter the market, ICX’s price might drop to support near $0.352. Moreover, breaching the immediate support level could force the Icon token to shed over 20% from the current level and test support near $0.308.
Meanwhile, ICX’s recent price action has helped its 20-day EMA (red wave) cross above its 200-day EMA (green wave) to form a bullish pattern called the golden cross. Market participants consider the pattern an indicator of positive sentiment and a buy signal.
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Bulls might try to increase the buying pressure to get ICX price to close above immediate resistance near $0.4. Moreover, a break and hold above the immediate resistance might help ICX price target resistance near $0.461 before retreating.
Icon Deploys BTP Contracts On Berlin Testnet
Icon Project announced taking another step towards introducing BTP 2.0 on April 4. The platform shared that it had successfully deployed one-way trustless BTP contracts on Icon’s Berlin testnet, BNB Chain testnet, and Ethereum’s Sepolia.
Icon stated that the development team was confident that “a BTP 2.0 testnet is a non-distant goal” despite some challenges remaining.
The Icon project aims to provide independent blockchains with different governments a medium to interoperate without intermediaries. The platform uses BTP (Blockchain Transmission Protocol) to achieve its goal.
BTP is a standard that helps heterogeneous blockchains with smart contract capabilities interoperate smoothly.
