Internet Computer breaks its latest high to reach $20. Let's take a look at the future prospects of the ICP price together.
Internet Computer Status (ICP)
After peaking at $16.30, Internet Computer (ICP) price began a consolidation phase, stabilizing in a range between this latest price level and $10.30. In late March, ICP broke through this range from above, reaching a new high slightly above $20. Each of these levels had been highlighted in the analysis of March 14, 2024, which confirms their importance.
At the time of writing, the price of Internet Computer is trading around $18.5. It appears that the cryptocurrency has retreated to enter a new period of consolidation. The latter occurs at the level of the 38.2% Fibonacci retracement, calculated since the last rise of the ICP from $10.3. This demonstrates that buyer interest persists despite the fact that selling pressure has taken hold. This resilience finds further confirmation as Internet Computer once again trades above its 50-day moving average. It may be comforting to think of a continuation of the current trend. Indeed, the dynamics of the cryptocurrency have naturally rebounded, as illustrated by the oscillators as well as the price of ICP itself. Each of these indicates that the technical outlook could support an extended uptrend.
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)
Open interest in ICP/USDT perpetual contracts has followed the direction of its price, which has more than doubled since the cryptocurrency's rebound from $10. This increase was accompanied by very slight liquidations, mainly of short positions, as well as a slight increase in the financing rate. This indicates that investor interest in ICP/USDT contracts has been primarily biased towards buying. However, we can observe that this buying interest is facing new selling pressure since the appearance of the consolidation of Internet Computer. Indeed, the latter has triggered a drop in open interest linked to cryptocurrency, with small buyer liquidations and, most recently, a drop in the funding rate.
Internet Computer's one-month liquidation heatmap reveals that ICP recently crossed a significant liquidation zone. This rebound thus highlighted buying interest in the cryptocurrency. Currently, the most visible liquidation zone closest to the current price is between $15 and $16. Below, we also observe areas around $13, and even lower, those of $10. If the price were to approach these levels, it could trigger massive order volume, increasing the possibility of a period of heightened volatility for Internet Computer. These areas therefore represent major points of interest for investors.
The assumptions for the Internet Computer (ICP) course
- If the price of Internet Computer remains above $16, we could anticipate a continuation of the upward trend up to $21. If the latter is crossed, the next bullish target could be the threshold of $25. At this point, that would represent an increase of more than 34%.
- If the price of Internet Computer fails to stay above $16, we could envisage a decline more or less around $13. If the bearish movement continues, the next support level to consider would be around $10. At this level, the drop would represent approximately -43%.
Conclusion
Internet Computer has proven its resilience in the face of consolidation phases, recently exceeding critical thresholds highlighted by preliminary analyses. This dynamic reaffirms the sustained interest in ICP, even in the presence of volatilities, which is promising for a continuation of the upward trend. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. 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.
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