ICP has been trading in a clear ascending channel on the daily timeframe. The price has been respecting the channel boundaries and making higher highs and higher lows. However, the price recently made a fakeout below the lower trendline, which resulted in a strong bullish reaction.
The ascending channel:
The ascending channel is a bullish pattern that is characterized by two parallel trendlines, one connecting higher lows and the other connecting higher highs. The price typically breaks out above the upper trendline, signaling a continuation of the uptrend.
The fakeout:
The price broke down below the lower trendline of the channel on March 8, 2023. However, this breakdown was a fakeout, as the price quickly reversed and rallied back above the trendline.
The bullish reaction:
The bullish reaction to the fakeout confirms the bullish trend and suggests that the price is likely to continue to rise in the near future.
The bull flag:
The price has since formed a bull flag pattern. The bull flag is a bullish continuation pattern that is characterized by a period of consolidation following a strong uptrend. The consolidation period typically takes the form of a pennant or flag, after which the price breaks out and continues its upward trend.
The breakout:
The price is now approaching the upper trendline of the bull flag. A breakout above this trendline would confirm the bullish continuation pattern and suggest that the price is likely to reach $25.