2020 has been a great year for the cryptocurrency markets so far, with Bitcoin and virtually all major altcoins posting sizeable gains. These gains, however, pale in comparison to those seen by ICON (ICX), which is a relatively small crypto that has been caught within a parabolic ascent over the past few days.
This parabolic rally has led ICON into a key resistance region, and the crypto is showing signs of slowing down as the immense buying pressure that drove this massive rally begins to slow down.
Importantly, ICX’s rally may offer some important intel into where other altcoins are going, and one analyst believes that it could signal the next “altseason” is imminent.
ICON Hits Key Resistance as Parabolic Rally Slows and as Crypto Market Faces Turbulence
At the time of writing, ICON is trading up nearly 40% at its current price of $0.516, which marks a massive climb from its daily lows of $0.33 that were set yesterday morning.
It is important to note that ICX started its parabolic rally in late-January, which came close on the heels of an extended period of ascension that the crypto faced throughout the early part of the month when it climbed from lows of $0.10 to highs of roughly $0.18.
Once it hit this level, the cryptocurrency’s bulls quickly catalyzed a massive amount of momentum that led the crypto to post market-leading returns that are historically only seen during massive market-wide bull trends.
Bagsy, a popular crypto analyst on Twitter, explained in a recent tweet that ICON is now starting to see diminishing volume as it pushes against high time frame resistance, which could mean its recent highs of $0.56 will mark a mid-term top.
“ICX Big Picture: We’re currently at HTF resistance, with diminishing volume and a lower high forming on the LTF. Personally I think we’re going to see a retrace from these levels. If we manage a strong daily close back above the EQ (5755) on strong volume, I’ll change my tune,” he explained.
$ICX Big Picture:
We're currently at HTF resistance, with diminishing volume and a lower high forming on the LTF. Personally I think we're going to see a retrace from these levels.
If we manage a strong daily close back above the EQ (5755) on strong volume, I'll change my tune. pic.twitter.com/p434Qs6QM8
— Bagsy (@imBagsy) February 4, 2020
Could ICX Offer Insight into What’s in Store for Other Altcoins?
Jacob Canfield – another popular crypto analyst – explained in a tweet from yesterday that he hopes ICON’s recent gains are setting the stage for other altcoins, further adding that he anticipates some consolidation before it potentially continues climbing higher.
“ICX is up 240% in the last 3 weeks, but I would be cautious as we are approaching high time frame resistance. I expect some consolidation at 5400 sats or a little pull back. It’s still down 95% from all time highs, but I hope that this is setting the stage for other altcoins,” he noted.
Although this could just be a one-off event that occurs in isolation, Bitcoin’s current bout of sideways trading within the lower-$9,000 region may be just what is needed for individual cryptos to start clocking insane gains.
Featured image from Shutterstock.