After a strong start of the week for crypto as Bitcoin pumped from $53k lows this weekend to $58k, the market is cooling off today and going through a slight correction.
We can’t really say that for the ICP price that pumped 11% today and is now trading around $8.5. It’s been a while since Internet Computer’s token was the biggest gainer among top altcoins.
It’s worth noting that ICP’s burn rate also pumped today. This might helped the positive price action.
Analyst Javon Marks posted a viral ICP chart last night. He also made a bold prediction that the price could rally 777% from the current levels.
What you'll learn 👉
Internet Computer: Technical Analysis Breakdown
The first downtrend break occurred toward the end of 2022, as noted in the chart. This is where ICP broke out of a long-standing descending trendline, which had been controlling the price action throughout most of 2022. This breakout signaled the beginning of a potential reversal and the end of the bear market.
After this breakout, the Internet Computer price showed a positive reaction, leading to a short rally, but this rally didn’t sustain long-term momentum. The price later consolidated and moved sideways into 2023.
The second downtrend break in late 2023 is significant because it confirms a second phase of bullish momentum after a long period of consolidation and sideways movement throughout 2023. After a gradual decline following the initial breakout, the price formed a series of higher lows, signaling that the bears were losing control.
A key technical indicator here is the confirmation of a “Hidden Bullish Divergence” on the chart. This occurs when the price makes higher lows while a technical indicator like RSI (Relative Strength Index) makes lower lows.
This pattern suggests that despite the price showing some weakness, the underlying strength is building, which is often a precursor to upward momentum. Hidden divergences are typically seen as continuation patterns, meaning the asset may resume its prior uptrend after some consolidation.
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Show more +ICP Price Target and Indicators
Marks’ tweet mentions a potential price target of $79.572, which is significantly higher than the current price near $9.00, indicating a potential increase of over 777%. This target is likely based on Fibonacci extensions or historical resistance levels. Reaching this target would represent a massive continuation, showing that ICP could be at the start of a significant rally.
The chart shows two key indicators: On-Balance Volume (OBV) and Relative Strength Index (RSI). The RSI has rebounded from lower levels, signaling that momentum could be building in favor of the bulls. The absence of overbought conditions suggests there may still be room for price to rise.
The OBV line is crucial for confirming the strength of a price move, as it considers the volume. If the OBV is increasing, it suggests that there is a buying pressure behind the current uptrend, making the bullish case stronger.
Read also: This Pattern Indicates XRP Price Will Rally to $227
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