Icon (ICX) is the perfect example of a bleeding cryptocurrency right now. The coin is down an alarming 96% since its all time high of $13.16 in January. The price is currently trading at $0.49 as can be seen on the ICX/USD daily chart above. Icon (ICX) perfectly explains the massive level of capitulation some altcoins had to go through during this recent correction. Over the past 7 months of correction, the price has continued to plummet, for the most part in a free fall against the US Dollar (USD). RSI has continued to trade in oversold territory since the beginning of August but the price has continued to fall further with the rest of the market.
The Vix Indicator on the bottom half of the chart shows how the price reached a perceived bottom since the beginning of August but the price has still continued to fall. The indicator shows a very strong possibility of this being the bottom for Icon (ICX) but until the whole market stabilizes, there is no hope for Icon (ICX) now that it has given up 96% of its gains since all time high. This means that most Icon (ICX) investors have already taken their profits or panic sold over the past seven months of correction, leaving the unfortunate few to hold the bags.
It is true that Icon (ICX) has performed terribly during this period of correction, but it is also true that it performed exceptionally well before the correction. The project received a lot of attention during late 2017 as Icon (ICX) projected itself as a “blockchain of blockchains”. This means that Icon (ICX) projected itself to be the one blockchain that connects all other blockchains under one roof. This is a big deal when you consider there are a lot of great projects in the market that could definitely benefit from coordination and exchange among themselves.
Despite recent losses, Icon (ICX) still looks very bullish for a reversal. The chart above for ICX/BTC shows that the RSI has been trading in a falling wedge for the past 5 months and is now all set to break out and reverse in the weeks ahead. Most altcoins share a similar outlook suggesting that the altcoin rally will likely commence before the beginning of September.
The EMA alignment for ICX/BTC remains heavily bearish with no signs of a near term recovery. Even if the RSI exits the falling wedge, the price will have to struggle to break past the 50 EMA first in order to climb higher. Considering that Icon (ICX) is a project with a lot of potential, it is likely that it will make big gains along with the rest of the altcoins during the upcoming altcoin rally and will most likely recover its previous losses. During the previous bull cycle of the market, some altcoins were hyped up unreasonably which lead to massive price boosts. Icon (ICX) was one of those coins, but regardless of that the project has a solid use case and can be expected to make new highs during the upcoming altcoin rally.