Internet Computer (ICP) Dips, Will Bearish Momentum Persist?
The price of Internet Computer (ICP) experienced a downward movement dropping by 41.98% to a low of $5.05 on April 26, 2023. This was after a significant surge from April 10 to April 19, when it started the downtrend.
This price decline affected the market sentiment of Investors and traders. Since the beginning of this month, ICP has exhibited range-bound behavior. ICP price has fluctuated between $6 – $5, resulting in a sideway price movement.
The question is whether the bearish momentum will continue or if there’s a chance for a reversal soon.
Bears To Hold Current Trend, Or Will The Bulls Rebuild Momentum?
According to data, ICP experienced a slight price increase, reaching $5.34, representing a 2.7% increase within the last 24-hour trading period. This increase suggests that demand has surpassed supply in the market. This might attract more buyers and also increase the overall market confidence.
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The total market cap of ICP is also up today by 2.58%, representing a value of over $2 million. The growth in market cap was potentially driven by an increase in demand or positive market sentiment. The 24-hour trading volume surged by 21.81% overnight, rising to about $19 million.
The Internet Computer Fear & Greed Index is 50 based on investor sentiment and market psychology. A value of 50 suggests that neither fear nor greed is dominant among traders and investors.
Based on the recent increase in the overall ICP’s price movement, the bulls are gradually taking control of the market. If this momentum persists, ICP might rise significantly in the next few weeks.
ICP Technical Outlook Using Indicators
The asset is trading above its 200-Day Simple Moving Average (SMA). This indicates a long-term bullish trend and presents a potential buy opportunity for traders and investors.
While ICP’s long-term prospects are bullish, there may be potential short-term uncertainties that need to be considered by traders.
For instance, the Relative Strength Index is showing 47.46. This shows that there’s market indecision between buyers and sellers. Also, the pressure currently in the market is neutral. Also, the Moving Average Convergence/Divergence (MACD) indicates a potential bearish trend as the MACD is trading below its signal line.
Moreover, ICP is below its 50-Day Simple Moving Average (SMA), a bearish indication based on the short-term price movement. The current price trend, as indicated by the ICP chart, suggests a possibility of further decline in the short term.
But it remains uncertain if this trend will continue or if the bulls will regain dominance as more developments on the network could spike adoption and usage. Internet Computer now trades between its direct support and resistance levels of $4.923 and $6.860.
The next significant support level is $3.302, while the resistance level is $8.251. If the bulls maintain this growing momentum, ICP might break the primary resistance level of $6.860 before heading toward the next resistance level.
Featured image from Pixabay and chart from Tradingview