Crypto Analysis: Internet Computer (ICP) about to reach a new high?

Internet Computer (ICP) remains above $10, suggesting the possibility of bullish continuation. Let’s take a look at the future prospects of the ICP price together.

Internet Computer Status (ICP)

After peaking at $16.28, Internet Computer (ICP) began a correction, finding a low at $9.5. Following this, the Internet Computer price rebounded more than 55% from this price level, forming an ascending wedge. It is important to note that this pattern is generally considered a bearish reversal sign. Recently, ICP reached the $14 level, a level highlighted in our February 7 analysis. It is pertinent to mention that the price range between $12 and $14 constitutes a significant value zone for ICP, indicating strong investor interest. Furthermore, the area between $5 and $6 is also worth highlighting for its relevance.

At the time of writing, ICP is trading above $13.10. The price has undergone a downward movement, but remains, as best it can, above its 50-day moving average, which can be reassuring to validate the idea that ICP is in an uptrend. On the oscillator side, they show a gradual recovery from the middle threshold, demonstrating persistent bullish momentum.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on derivatives (ICPUSDT)

We can observe that the open interest of ICP/USDT perpetual contracts has increased in parallel with its price, accompanied by a slightly positive funding rate. This simultaneous rise suggests that traders’ speculative interest is primarily oriented toward buying. However, we can report a recent decline in the latter, which suggests that sellers are regaining ground. As for liquidations, they are mostly on the buyers’ side, which, although remaining at moderate levels, could indicate a reduction in buying pressure.

The heatmap of Internet Computer liquidations over the past three months reveals that ICP has recently reached a strong liquidation zone. Unfortunately, it appears to be increased short interest that has triggered a negative market reaction at this level. Currently, the most significant liquidation zone is below the current price, specifically between $10.7 and $12.6. The price approaching these levels could result in a massive triggering of orders, increasing the possibility of a period of heightened volatility on ICP. These areas therefore represent crucial points of interest for investors.

The assumptions for the Internet Computer (ICP) course

• If the price of Internet Computer remains above $10 we could anticipate a return to $16. If the latter is crossed, the next bullish objective could be the psychological threshold of $20 or even the resistance of $25. At this point, that would represent an increase of +89%.

• If the price of Internet Computer fails to stay above $10, we could consider a decline towards the $9 or even $8 range. If the bearish movement continues, the next support level to consider would be around $5. At this point, that would represent a -60% drop.

Conclusion

Internet Computer has demonstrated persistent buying interest, however, a short-term correction appears to be looming. Will this correction stimulate renewed buying interest? What is certain is that it will be crucial to carefully observe the price reaction at the 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. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.