The Internet Computer (ICP) has experienced a remarkable increase in value over the past few weeks, reaching a new yearly high of $11.90 on December 16th. However, a slight correction has occurred since then, and ICP is currently trading just above its key support levels. This analysis will explore the current price trend of ICP, its potential for future growth, and the insights of cryptocurrency analysts.
Surpassing Long-Term Resistance Levels
ICP’s price has been on a steady upward trajectory since falling to a low of $2.82 in September. The upward movement initially occurred gradually but picked up pace over the past two weeks. Last week, ICP surged by 90%, breaking through two significant resistance levels: one diagonal and one horizontal.
ICP/USDT Weekly Chart. Source: TradingView
The breakout from these resistance levels confirms the growing bullish sentiment in the market and indicates that ICP could be entering a new phase of growth.
Momentum and Technical Indicators
The Relative Strength Index (RSI) is a momentum indicator that helps traders identify overbought or oversold conditions. Readings above 50 typically indicate that buyers are in control, while readings below 50 suggest the opposite. The weekly RSI for ICP is currently above 50 and trending upwards, which is a bullish sign.
Analyst Sentiments
Cryptocurrency analysts on various platforms have expressed mixed views on the future trend of ICP. Some analysts, like Nihilus, are cautious in the short term due to the potential for a breakdown from an ascending support line. They predict a target price of $8 if the trend line breaks.
On the other hand, other analysts, such as Tommyinvests, are bullish on ICP’s long-term prospects. He highlighted the cost-effectiveness of data storage on the ICP network compared to other platforms, emphasizing its potential for widespread adoption.
Another analyst, icircle, believes that ICP could reach $100 in 2024 and $1,000 by 2025.
Potential Price Trajectory
While the shorter-term outlook for ICP is somewhat uncertain, the long-term prospects appear promising. A bounce from the current support level could lead to a 40% increase to the yearly high of $11.90.
Alternatively, a further decline could push ICP towards the 0.5 Fib retracement support at $7.40. However, the absence of strong horizontal support at lower levels suggests that the decline may not be significant.
ICP/USDT Daily Chart. Source: TradingView
Overall, the price trend of ICP indicates that it is in a bullish phase and has the potential for continued growth. However, it is important to remember that cryptocurrency prices are volatile, and investors should conduct their own research and exercise caution before making investment decisions.
FAQs
What is the Internet Computer (ICP)?
The Internet Computer is a revolutionary blockchain platform that enables developers to build decentralized applications and services that run on the internet without the need for intermediaries.
What is the role of ICP in the Internet Computer network?
ICP is the native cryptocurrency of the Internet Computer network. It is used to pay for computational resources, such as storage and processing power, on the network.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
Credit and Rights: This article was written and the rights belong to BITboosters.