Technical Analysis
The Internet Computer (ICP) price recently experienced a notable pullback, dropping from a high of $16.3 to a low of $10.3, a 36.6% decline. This decrease coincided with low transaction volumes, suggesting it might be a short-term correction rather than a long-term trend reversal.
Currently, the ICP price is testing the support level of a previously breached ‘cup and handle’ pattern, which could indicate an opportune moment for traders to enter the market.
Bullish Indicators
- A bullish reversal from the $11 mark with an engulfing candle signals an uptrend continuation.
- The ICP price above daily EMAs(20, 50, 100, and 200) indicate an aggressive uptrend
- The intraday trading volume in ICP is $10.2 Billion, indicating a 78% gain.
Bearish Indicators
- The RSI indicator is currently in overbought territory, which could indicate a potential correction.
- The MACD indicator is also showing signs of a bearish divergence, which could further support a potential pullback.
Volume Tells Tale of Sustainable Recovery
In a recent X(formerly Twitter) post, the renowned trader Jim Roppel highlighted an interesting volume-price action relationship in ICP price. He mentioned the asset with super low volume during the pullback, while a significant surge in trading during the rise as happened today with an intraday gain of 20%
This pattern indicates the traders are less interested in trading this asset for short selling, and more focused and confident in long entry opportunities.
Moving Averages and Indicators
- Exponential Moving Average: The 20-day EMA provides suitable pullback support for buyers.
- Vortex Indicator: A bullish crossover state between the VI+ and VI0 slope reflects a recovery trend in active.
Conclusion
The ICP price has been on a bullish run since mid-October, but the recent pullback has raised some concerns. However, the technical indicators suggest that the pullback may be a short-term correction and that the uptrend is likely to continue.
Traders should keep an eye on the ICP price and the volume to determine the next potential trading opportunity.
- ICP is a highly scalable blockchain protocol that is designed to support the development of decentralized applications.
- The ICP mainnet was launched in May 2021, and has since attracted a growing number of developers and users.
- ICP has a strong team of developers and advisors, led by Dominic Williams, the co-founder of DFINITY.
- ICP is well-funded, with a market capitalization of over $1 billion.
- ICP has been featured in several news articles and reviews, which has helped to raise awareness of the project.
- The ICP community is active on social media and other online platforms, and there is a growing number of supporters for the project.
- The ICP price has been volatile in recent months, but it has generally been trending upwards.
About the Author
John Doe is a professional trader with over 10 years of experience in the financial markets. He has a deep understanding of technical analysis and has a proven track record of success in trading cryptocurrency and other assets.
John is passionate about sharing his knowledge and insights with others, and he regularly writes articles and provides trading signals to help others improve their trading performance.
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