Connect with us
Active Currencies 14724
Market Cap $2,584,639,754,291.07
Bitcoin Share 51.42%
24h Market Cap Change $0.82

After breaking down below recent lows, here’s where ICP is likely to head next

2min Read

Share this article

Ranked 32nd by market capitalization, Internet Computer saw its token ICP trading at $20.7 at the time of writing. It appeared to break the market structure in early January, but the intense selling pressure since then has actually seen ICP register a new set of lows at $19.1, just beneath the $20.9 lows in late December. Where was ICP likely headed next?

Source: ICP/USDT on TradingView

Two sets of Fibonacci retracement lines were drawn for different moves of ICP in the past few months. They showed good confluence at the $39.7 level, and marked the $26.9-$29.7 area as one where sellers could once more step in with strength.

The $28.5 has been a long-term support level, and the price crashed straight past this level in the past month. Price seeks liquidity, and ICP could find this liquidity at the $28 area in the weeks to come.

However, the market structure remained bearish. While a strong bounce was seen from $20.7 to $38, it was followed by a huge plunge. This was not an encouraging sign for the bulls as the price broke beneath the lows set in December.

A move to $28 could occur, but whether it sees a rejection there or can climb higher to flip it to a demand region remained to be seen.

Another interesting thing was that both the Fibonacci sets of levels gave a 27.2% extension level at $10.7. This could be a target that ICP would trade at in the coming months. It is not unheard of for altcoins to lose more than 99% of their value once their hype dies down.

Rationale

Source: ICP/USDT on TradingView

The RSI was climbing from the oversold territory but was still beneath neutral 50. This showed that the bearish trend was yet unbroken, and the neutral 50 area could be revisited once again before a possible rejection.

The Cumulative Delta Volume showed some demand behind ICP’s bounce from $20 to $36, but also showed heavy selling pressure in the past couple of weeks.

Both the MACD and the Awesome Oscillator showed that, in recent weeks, momentum has been strongly bearish. In the next few days, weakly bullish momentum could be seen for ICP as the MACD appeared to form a bullish crossover.

Conclusion

The $28 area will likely hold much importance in the coming weeks for ICP. This was an area bulls would need to flip from resistance to support before they can attempt to reverse the downtrend since September.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.