ICP Price Pullback and Support Level
The Internet Computer (ICP) price recently experienced a significant pullback, dropping by 36.6%. However, this decrease in price coincided with low transaction volumes, suggesting it may be a short-term correction rather than a long-term trend reversal. Currently, the ICP price is testing the support level of a previously breached ‘cup and handle’ pattern, which could indicate an opportune moment for traders to enter the market.
Is ICP Price Heading to $15?
- A bullish reversal from the $11 mark with an engulfing candle signals an uptrend continuation.
- The ICP price above daily EMAs(20, 50, 100, and 200) indicate an aggressive uptrend.
- The intraday trading volume in ICP is $10.2 Billion, indicating a 78% gain.
On the daily time frame chart, the Internet Computer coin displays a bullish reversal ‘Cup-and-Handle’ formation that has been developing over the last 18 months. This pattern is a crucial indicator for market accumulation, potentially signaling a major shift in trend direction.
The recovery trend, which began in mid-October, saw the coin’s price escalate dramatically from $2.9 to $16.3, marking a 457% increase. This surge resulted in a decisive breakout from the neckline resistance of the pattern on December 30th, suggesting the coin is moving out of a prolonged accumulation phase and could be primed for a significant breakout.
Last week’s pullback to the $11 level appears to be a retest of the breached neckline, now serving as a support level. The subsequent 15% increase in price today indicates active accumulation by buyers at these lower levels, reinforcing the likelihood of a sustained uptrend.
If the ‘Cup-and-Handle’ pattern continues to hold, there’s potential for the ICP price to increase by an additional 56%, possibly reaching the key psychological threshold of $20.
Volume Tells Tale of Sustainable Recovery
In a recent X(formerly Twitter) post, renowned trader Jim Roppel highlighted an interesting volume-price action relationship in ICP price. He mentioned the asset with super low volume during the pullback, while a significant surge in trading during the rise as happened today with an intraday gain of 20%.
This pattern indicates that traders are less interested in short selling this asset and are more focused and confident in long entry opportunities.
- Exponential Moving Average: The 20-day EMA provides suitable pullback support for buyers.
- Vortex Indicator: A bullish crossover state between the VI+ and VI0 slope reflects a recovery trend in action.
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Hot Take: ICP Price Potential and Market Confidence
The recent pullback in the ICP price may have been a short-term correction rather than a long-term trend reversal. With the support level of the ‘cup and handle’ pattern being tested, there could be an opportunity for traders to enter the market. The volume-price action relationship also suggests that traders are confident in long entry opportunities. If the ‘Cup-and-Handle’ pattern continues to hold, there is potential for the ICP price to increase significantly, possibly reaching $20. Overall, market confidence and indicators point towards a sustainable recovery for the Internet Computer coin.
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