In a sweeping downturn affecting the entire crypto space, Internet Computer’s (ICP) price has not been spared, retracting to $16.84 after an impressive rally. This pullback represents a broader correction as the market capitalization dipped by 6% in the past day, following a period where leading cryptos like BTC and ETH saw over 5.5% declines.
Despite the market’s recent overbought signals, ICP showcased a staggering week of trading, skyrocketing 90.82% from $10.79 to a high of $20.59. The ensuing sell-off comes as the crypto community’s initial bullish trend begins to wane. The Relative Strength Index (RSI) for ICP, once soaring at 86, has receded to around 55.57 — still in bullish territory but indicative of decreasing buying momentum.
The 24-hour trading volume for ICP stands at $302.90M, underlining the heightened activity despite the correction. The RSI’s dip below the overbought zone could foretell a phase of market consolidation, where prices might stabilize within a narrower band as the market assesses its next move.
The immediate short-term could see the token’s price fluctuating between support at approximately $16.0 and resistance around the $18 level. If buying pressure revives, a retest of the $20.59 peak might be on the cards. Conversely, should the bearish trend persist, ICP might retreat towards stronger support levels, potentially around $11.50 to $10.50, as suggested by recent market movements.
ICP Encounters a Falling Wedge Pattern, Signaling Possible Reversal
Internet Computer’s (ICP) recent price action on the 4-hour chart displays a falling wedge pattern, suggesting that a trend reversal may be imminent. At present, ICP is trading at $16.84, within the confines of this pattern, typically considered a bullish formation in technical analysis. The apex of the wedge nears, suggesting that a breakout could occur, leading to a potential change in the current price trajectory.
The Relative Strength Index (RSI), which measures the magnitude of recent price changes to evaluate overbought or oversold conditions, is hovering around 59.39, indicating that ICP is neither overbought nor oversold.
The Stochastic RSI, another momentum indicator that compares the closing price of a commodity to its price range over a certain period, stands at 47.44, reflecting a neutral momentum which aligns with the indecision suggested by the falling wedge.
For traders keeping an eye on ICP, the key price levels to watch are the upper and lower boundaries of the wedge, around $18.00 and $16.00, respectively. A decisive break above the wedge could propel ICP towards resistance at $18.50, while a drop below the pattern might see prices retracting to support near $11.15.
