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Highlights
- ICP price recoups losses as the MACD sends a short-term buy signal.
- An impending falling wedge breakout could steady the uptrend above $10.
- Resistance at the 200-day EMA may impede the incoming breakout, resulting a liquidity sweep at $8.4 and $7.8 levels.
Internet Computer price is gearing up for a modest breakout as the Federal Reserve matches market expectations, leaving the interest rate unchanged between 5.25% and 5.5%. In his latest remarks, Powell maintained a dovish tone on interest rate cuts, shrinking the chances of a rate cut in July.
According to insight from Fed Watch, market watchers expect the Fed to consider the first rate cut in September. Crypto prices had started to rise gradually ahead of the meeting, with Bitcoin jumping 1.5% to $66,485 while Ethereum remained relatively unchanged at $3,300 support.
Internet Computer Price Begins Bullish Reversal
A 2% surge pushed ICP price from support at $8.8 to $9.21 on Wednesday, as shown by CoinMarketCap data. Bulls regained control of the trend following a significant correction from the July 22 peak of $10.98, as volume shrunk over the last ten days. Internet Computer assumed a downtrend, tagging three lower highs and three lower lows. Using two trend lines to connect these price points established a falling wedge pattern.
This constitutes a trend reversal pattern, foreseeing a 12% breakout at $10.44. The target is obtained by measuring the distance between the first swing low and swing high and appending it to the breakout point.
Traders look for a breakout above the trend line resistance, betting on a drastic increase in price, often validated by a spike in trading volume. They place buy orders above the breakout point and the stop loss slightly below it.
In addition to the impending wedge breakout, the Moving Average Convergence Divergence (MACD) indicator recently confirmed a buy signal. This short-term call to buy ICP occurred after the blue MACD line crossed above the red signal line. The MACD’s continued movement inching closer to neutral will further drive interest in the token and trigger a major Internet Computer price rally.
The $10 level could be the first profit target after the wedge pattern breakout, but traders can monitor the trend for gains above $10 to maximize their return on investment.
After breaking out of the falling wedge, traders should anticipate impediment at the 50-day Exponential Moving Average (EMA). More selling pressure could hinder growth above $9.5, sending sell signals to traders who may sell intending to buy ICP again at a lower price point. If Internet Computer price overshoots the 200-day EMA support at $9.19, there’s a likelihood of decline escalation to $8.5 and $7.8 levels.
Frequently Asked Questions (FAQs)
1. Will ICP continue with the rally in August?
2. Which targets can traders work with in the short term?
3. What are the key indicators and signals for this uptrend?
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