Internet Computer (ICP) En route to a bullish rally? Crypto Analysis of February 7, 2024

After hitting rock bottom, internet computer has bounced back by over 460% at the end of 2023. Let’s take a look at the future prospects of the ICP price together.

State of the Internet Computer (ICP)

Internet Computer was one of the cryptocurrencies most impacted by the bear market, experiencing a dramatic drop of nearly 99%, falling from $630 to less than $3. This significant decrease indeed devalued the digital currency, but Internet Computer remains among the main cryptocurrencies in terms of market capitalization. As of the writing of this text, it occupies the sixteenth position in the CoinMarketCap ranking. This status, combined with its ongoing development, could explain the renewed interest from investors at the end of the year 2023.

The Internet Computer price hit a low of $2.8, before significantly rebounding up to $16.2. This recent increase allowed the cryptocurrency to form a ‘double bottom’, a chart pattern that suggests a potential continuation of the bullish trend. At the time of this article’s publication, ICP is trading above $12. Recently, it has entered a consolidation phase, with clear support identified at $11 and resistance at $14.

Internet Computer maintains its position above the 50 and 200-day moving averages, signaling an uptrend. On the oscillators’ front, the cryptocurrency displays a momentum still oriented upwards. However, the recent decline of these oscillators indicates a marked slowdown in the bullish dynamic. From an optimistic viewpoint, this could suggest that the cryptocurrency is currently undervalued. Nonetheless, from a more pessimistic perspective, it could also be seen as a sign that ICP’s momentum is shifting towards a downtrend.

The current technical analysis was conducted in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and mutual aid around financial markets in a professional and warm atmosphere.

Focus on derivatives (ICPUSDT)

The three-month liquidation heat map for Internet Computer reveals several areas to take into consideration. Below the current price, the area between $11.3 and $10.5 is noteworthy. Above the current rate, the $14 zones deserve to be highlighted. The price’s approach to these levels could trigger a massive order execution, thus increasing the likelihood of a period of increased volatility on ICP. These areas therefore represent crucial points of interest for investors.

Hypotheses for the Internet Computer (ICP) Price

• If the price of Internet Computer holds above the $10 – $11 range, we could anticipate a continuation of the bullish trend up to $14. If this level is breached, the next bullish target could be its last peak, around $16.3. At this point, it would represent an increase of more than 36%.

• If the price of Internet Computer fails to hold above the $10 – $11 range, we might consider a retreat to the $9.5 bracket. In the event of a continuation of the bearish movement, the next support level to consider would be around $8.5. At this level, the drop would represent about -28%.

Conclusion

Internet Computer has experienced high volatility. However, it seems that the cryptocurrency is facing a resurgence of buyer interest. Has ICP reached its ultimate support level? What is certain is that it will be crucial to closely observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Lastly, let’s remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also quickly evolve based on more fundamental factors.