The price of Internet Computer (ICP) may be looking to extend recent losses after dropping 5% in the last 24 hours. BeInCrypto has discovered this speculation after examining the technical and on-chain status of the token.
At the time of writing, ICP is trading at $9.03. However, holding the $9 zone for the next few days could be a huge undertaking, and here’s why:
Warning Signs for Bullish Internet Computer Investors
One of the most important indicators for the price rise of ICP is the Money Flow Index (MFI). MFI is a technical oscillator that measures trading pressure using volume and price. An increasing reading means that buying pressure is increasing, while a decreasing reading means that selling volume is dominant.
However, the same indicator also detects overbought and oversold conditions. A rating above 80.00 indicates that the asset is overbought, while a rating below 20.00 indicates that it is oversold.
On the daily Internet Computer chart, the token was overbought on July 21st, and reached the same condition on July 26th after a price increase. As a result, this led to a price retracement, and the price may continue to fall as more funds are withdrawn from the ICP market.
Read more: Internet Computer (ICP) Coins Explained for Beginners
7 days ago, BeIncrypto reported that the correlation between ICP and Bitcoin (BTC) was key. The current price trend shows that it is still in line, as the BTC price has also fallen.
Despite the bear market bias, Santiment’s on-chain data shows that sentiment towards cryptocurrencies is not pessimistic. Weighted Sentiment, which measures online comments about projects, confirms this.
Three days ago, the weighted sentiment index was in negative territory, indicating a gloomy broad market outlook. However, at the time of writing, it is in positive territory, suggesting that ICP holders are gaining confidence in the short-term potential of the token.
However, emotions alone cannot trigger a token price increase. Therefore, it is necessary to analyze the short-term potential of ICP from a technical perspective.
ICP Price Prediction: Will the Uptrend Continue or Will We Face a Defeat?
The daily ICP/USD chart shows that the cryptocurrency formed a rounded bottom between June 16 and July 18. The rounded bottom pattern signals a trend reversal from downtrend to uptrend.
This technical pattern is one reason why ICP went up to 10.95 on July 22nd. However, the token has now erased some of those gains. As you can see in the chart below, the bulls are trying to prevent ICP from falling below $9.
However, the cumulative volume delta (CVD) is negative. If the CVD is positive, the buying pressure in the spot market exceeds the selling pressure. Since it is negative, it means that the sellers are in control and there is a risk that the ICP will fall.
Read more: Internet Computer (ICP) Price Forecast 2023/2025/2030
If buyers fail to stop surrendering, ICP may not be able to resist the downtrend. If this happens, the price will fall below the major support level, reaching around $8.45. However, if buying pressure increases, ICP may enter the overhead resistance level of $10.28.
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