ICP → Going to $10 or $30!? A Reversal May be Coming.ICP has printed three pushes up in a bull channel, reaching $20.90. It is currently holding its position above the Daily 30EMA. Is it time to short?
How do we trade this? 🤔
We do not yet have a short signal near a key resistance zone. Three pushes up after the breakout into the bull trend is a sign to start looking for reversals, but we have yet to see a reversal pattern or signal candle on the Daily or Weekly timeframes.
Bitcoin may have one more push up before it reverses, the alt coin market will likely follow that pattern. and that includes ICP. The next resistance area for ICP is around $23.00, which is at the top of the bull channel and near the resistance zone. If we get a sell signal bar and preferably, a confirmation bar closing on or near its low, a 1:1 short scalp is reasonable.
💡 Trade Idea 💡
Short Entry: $21.70
🟥 Stop Loss: $28.00
✅ Take Profit: $15.40
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Three pushes up into a bull channel after a of the current support zone.
2. Price action is above the Daily 30EMA and in a trading range.
3. 27% gap to the top of the bull channel which is near the resistance zone.
4. Target the resistance zone for a sell signal bar around $21.00
5. RSI at 63.00 and below the Moving Average, supports short bias.
💰 Trading Tip 💰
The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades and start looking for reversals.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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