Internet Computer Bounces Around $10 — Where Will ICP Stop Its Run?

Key Takeaways

• Internet Computer rose by 300%.
• This is its first larger uptrend since the token was released.
• Signs of struggle are seen with significant correction looming.

Internet Computer (ICP)  has been a notable performer, exhibiting a noteworthy performance in recent months. Starting from a modest low of $2.90 on October 11, ICP made an impressive leap to its yearly high of $11.70 on December 16, increasing by 300%. 

However, this peak was short as the price underwent a sharp 26% drop to $8.60 by December 21. The cryptocurrency market, known for its volatility, has witnessed yet another twist in the tale of ICP’s price journey.

A new uptrend is taking shape recently, with the price momentarily spiking near the $11 mark today. However, this surge was fleeting, as the price quickly retracted to $9.60. The appearance of a large wick on the price chart is a tell-tale sign of selling pressure and with the price making a lower high than its December 16 peak, it raises a crucial question: Is this a harbinger of a larger downtrend, or is ICP gearing up to surpass its previous high? 

ICP Price Analysis 

The price of ICP has been in a downtrend since its market release in May 2021. It started at the price of $2800 at its peak and fell to $27 by July same year. The momentum slowed, but a sustainable downtrend prevailed, with a multi-year bear market pushing the price as low as $2.90 on September 22, 2023. 

After retesting this level on October 11, it saw a bounce. This turned into the first significant uptrend since ICP entered the market. It made a breakout above its descending resistance and made a higher high, reaching its next resistance around $10. 

This might end this uptrend as it started showing signs of struggle, with the RSI indicating overbought conditions above 70% since December 16. 

Correction starting? 

Zooming into the 4-hour chart, we can see that there is a potential for a larger correction starting. The uptrend has shown a five-wave pattern, with today’s high being lower; it could be the starting wave A out of the ABC to the downside. 

If this is true, we could see an immediate decline to $6 before any major recovery for wave B. However, if ICP is to make its larger bull market correction, measuring its optimal Fibonacci retracement level of 0.618, we come up to a target of just below $5. 

This will shortly occur as if the price starts a larger descending move; it should now go below $8.50. But if another high is ahead, the price would start an immediate increase. 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.