The Internet Computer (ICP) Price and Its Recent Movement
The price of Internet Computer (ICP) reached a new yearly high of $11.90 on December 16, but it has since fallen. Despite the decrease, ICP is still trading above an important horizontal area. The question is whether it can validate this area as support and continue its upward movement.
Internet Computer Moves Above Long-Term Resistances
ICP’s price has been on the rise since hitting a low of $2.82 in September. The upward movement started gradually and accelerated over the past two weeks. Last week alone, ICP saw a 90% increase.
This acceleration led to a breakout from two resistance levels, one diagonal and one horizontal. On December 16, ICP reached its highest price since May 2022 at $11.90.
Despite a slight decrease this week, the altcoin is still trading above both resistances.
Market Traders’ Perspective: Bullish Trend Indicators
Market traders often use the Relative Strength Index (RSI) as a momentum indicator to determine overbought or oversold conditions and make decisions regarding asset accumulation or selling. An RSI reading above 50 and an upward trend indicate that bulls have an advantage, while readings below 50 suggest the opposite.
In the case of ICP, the weekly RSI is increasing and currently above 50, signaling a bullish trend.
Analysts’ Views on ICP’s Future
Cryptocurrency analysts have mixed opinions on the future trend of ICP.
Nihilus is bearish in the short term due to a potential breakdown from an ascending support line. He predicts a target near $8 once the trend line breaks.
On the other hand, Tommyinvests is bullish on ICP and believes that the ecosystem deserves recognition. He compares the cost of data on ICP ($5) to other platforms like Solana ($800,000) and Ethereum ($15,494,409).
Additionally, icircle predicts that ICP will reach $100 in 2024 and $1,000 in 2025.
ICP Price Prediction: Can Breakout be Sustained?
The shorter-term six-hour chart provides a mixed reading for ICP’s price action. While it broke out from an ascending parallel channel, indicating a bullish trend, it also formed a double top pattern (considered bearish) combined with a bearish divergence in the six-hour RSI.
If the decrease continues, the altcoin may find support at the 0.382 Fib retracement level of $8.47 or potentially fall further to the 0.5 Fib retracement level at $7.40.
However, if a strong bounce occurs at the 0.382 support level, it could trigger a 40% increase to retest the yearly high of $11.90.
Hot Take: What Lies Ahead for ICP?
The future of Internet Computer (ICP) remains uncertain as analysts have differing opinions on its trend. While some are bearish in the short term, others are optimistic about its potential. The recent breakout and subsequent decrease indicate volatility in the market.
Ultimately, it will depend on whether ICP can find strong support and resume its upward movement or if it succumbs to further selling pressure. Investors should closely monitor key levels and indicators to make informed decisions about their ICP holdings.
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