Internet Computer (ICP) Recovery Hits Crossroad on Path to July High
ICP recovers 45% since September low but now faces a key breakout. Which scenario is getting confirmed?
Key Takeaways
- ICP hit a high of $21 after a prolonged recovery.
- Overbought RSI suggests reversal and testing of key support levels.
- A breakout from the ascending triangle will confirm the direction of the future trend.
After hitting a significant low in 2022, ICP has shown signs of recovery, reaching its highest price since April 2022 before entering a period of consolidation.
With wave structure analysis pointing to possible trends, the asset now stands at a critical juncture between bullish and bearish scenarios, awaiting further confirmation.
ICP Price Analysis
ICP hit a low of $2.70 on Sept. 18 last year after an extended bear market. However, it began a new bull cycle in December.
By March 28, ICP surged to a high of $21, its highest price since April 2022. Wave structure analysis suggests this peak may have marked the end of the first uptrend in a larger bullish cycle. The daily chart’s Relative Strength Index (RSI), which indicates overbought conditions, further supported this.
As such, a reversal was expected, and the price entered a prolonged period of declining price action.
On July 5, it landed on the 0.786 Fibonacci retracement level of $6.58, where it found support.
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This level was retested after the first recovery to $11, with its last retest on Sept. 6. A new uptrend began as ICP gained over 45% until Sept. 28.
However, momentum stopped just below its July high, leaving the ICP price at a crossroads between a bullish and bearish scenario.
ICP Price Prediction
Zooming into the hourly chart and counting the sub-waves, we see a strong chance that ICP formed an upward ABC correction on July 5.
According to this count, its first recovery is the A wave, while the recently formed ascending triangle is the wave C, as an ending diagonal.
If this is true, an immediate downturn is expected, with the price continuing its higher degree downtrend from its yearly high.
In that case, it would be eyeing lower values than in July, with its next likely target being $2.80.
Read more: Internet Computer Price Prediction 2024: ICP Price Analysis
However, should the price bounce from the now interacted ascending support and break down above ascending resistance, a bullish scenario might come into play.
In this case, its recovery in July was the first wave out of the five-wave impulse, making its subsequent retracement until Aug. 5 the second sub-wave.
The ascending triangle would, in that count, be a lower-degree five-wave move only as the first sub-wave in a higher-degree count.
Be it as it may, the breakout direction from the ascending triangle will provide further insight into the following dominant trend.
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