A negative funding rate shows shorts are exposed to rising prices.
Sustained buying pressure could drive a major resistance breakout
Internet Computer (ICP) has surprisingly broken away from the broader crypto market downturn.
Over the past 24 hours, the total cryptocurrency market cap has decreased by 4.89%, with Bitcoin (BTC) sliding below $90,000.
Ethereum (ETH), on the other hand, has collapsed below $3,000. Despite this, ICP’s price moved against the trend, posting a 13.53% increase within the same period.
Here is why, and what could be in store for the altcoin.
ICP Pumps Against BTC, ETH Crash
Looking at the 4-hour chart, ICP’s price trended downwards, posting lower highs and lows between Nov. 9 and 17.
However, things changed today as the altcoin rose above the upper trendline, with a green candlestick that sent it above $5.
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As seen below, the Bull Bear Power (BBP) was negative during the period the cryptocurrency experienced a downturn.
Today, that is no longer the case, as the indicator has turned positive. This positive reading indicates that buyers have outpaced sellers.
If sustained, this could drive ICP’s price toward the next resistance level at $6.62. However, for that to happen, bulls have to defend the support at $4.78.
Additionally, the Awesome Oscillator (AO) has displayed green histogram bars, indicating that momentum is slowly shifting from bearish to bullish.
Once the AO reading crosses the zero line, the Internet Computer crypto will likely shatter the overhead resistance.
Furthermore, on-chain data suggests that a short squeeze may amplify ICP’s next significant move.
Shorts Pressure Near Breaking Point
Santiment’s metrics indicate that the funding rate has turned extremely negative, suggesting a significant dominance of short positions across derivatives markets.
Under normal conditions, negative funding implies that sellers are confident and are willing to pay long traders to maintain their positions.
However, because ICP’s price is rising while shorts gain no measurable reward, the market is signaling a growing mismatch between positioning and price action.
This imbalance acts as a precursor to a short squeeze. As the price moves against the heavily short-leaning market, traders holding short positions may be forced to close their positions by buying back ICP at higher values.
That forced buying can add fuel to the rally, pushing ICP’s price even higher.
ICP Price Prediction: Major Reversal
Meanwhile, the daily chart for ICP presents a set of mixed signals. On one hand, the price has broken above its falling channel, suggesting that bearish momentum is weak.
However, the Moving Average Convergence Divergence (MACD) has printed a bearish crossover, with the longer Exponential Moving Average (EMA) crossing above the shorter one.
This position typically signals a potential loss of upward momentum.
At the same time, the Chaikin Money Flow (CMF) remains above the zero line, indicating consistent capital inflows and supporting the possibility of continued buying pressure.
If this influx of liquidity persists, ICP’s price could attempt to break above the $5.94 resistance level.
A successful close above that zone may open the door for a move toward the 0.618 Fibonacci golden ratio at $6.85, a key level targeted during mid-range recoveries.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
