Although the recent gains of ICP seem to lead to a significant pullback, the bullish volume is still not decisive enough. New momentum might begin shortly before the price rises to USD 14.28, but the confirmation of a significant rally would be necessary.
In 2021, one of the cryptocurrencies that surprised the community the most was Internet Computer (ICP). It occupied 5th place in the crypto market ranking just one day after its launch.
That cryptocurrency appears to have died after losing around 98.89% from its all-time high of USD 750.53. However, a recent recovery seems to offer an opportunity to traders.
ICP is trading at around USD 7.62 and has accumulated a 9.9% gain over the last seven days. While its daily trading volume is above USD 126.53 million, its market capitalization is about USD 1.78 billion. It occupies 39th place in the cryptocurrency ranking, according to CoinGecko.
It is relevant to know Internet Computer is a blockchain project launched by the non-profit organization DFINITY Foundation in May 2021. It seeks to push the boundaries of Internet functionality and encourage the development of smart contracts.
A team of cryptocurrency enthusiasts helps support smart contracts and scalability while maintaining security. However, its roadmap, which requires more than ten years to develop fully, has sharply curtailed interest among short-term investors.
Technical Analysis of the Price of Internet Computer
After arriving into the market with a very high price and capitalization, its initial investors took profits. That led to a considerable drop, which has continued without showing any signs of exhaustion.
However, the sellers have lost strength with each low they reach, which is evident in considerable divergence between the price chart and the RSI.
At least one major rally may occur soon, representing an excellent opportunity for short-term speculators.
The recent gains seem to be leading to a significant pullback, but the bullish volume is still little decisive.
The price maintains the 8-week EMA and 18-week SMA crossed to the downside. Those indicators may work as dynamic resistances if the price seekd to move to the upside.
Before thinking of a trend reversal, Internet Computer (ICP) should reach increasingly high lows in the weekly time frame.
Daily Analysis of the Price of Internet Computer
The daily ICP/USDT chart shows a recent behavior capable of breaking through several immediate resistances. It could also give way to a short-term trend transition of the price.
The bulls are now in control of the market and will likely make further gains within the next few hours/days.
The recent bullish volume of ICP is an excellent indicator of the strength of buyers. There was a brief correction after resistance at USD 9.47 hampered the price. A new momentum will possibly begin in the next few hours before reaching USD 14.28.
If the price broke through immediate support at USD 7.67, it would lose the recent momentum. In addition, it would be necessary to wait for further signs to confirm the start of a significant rally.
By Alexander Salazar