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Highlights
- ICP stands out with a 4% increase reclaiming the important $10 support.
- Resistance at the 200-day EMA holds the bulls back while the 50-day EMA serves as the immediate support.
- Tentative support areas remain at $8 and $6 if Internet Computer price suffers a major setback below $10.
Internet Computer price was on the frontlines of a Bitcoin-led rally on Friday, charging past $10. After a brief correction in Bitcoin price, support at $64,000 allowed for re-accumulation resulting in a sharp move above the $66,000 mark.
Altcoins had woken up during the US session with Ethereum closing in on $3,500, Solana pumping to $170 while XRP reclaimed $0.56 ahead of an expected swing beyond $0.6.
ICP, the token powering the Internet Computer ecosystem, which aims to become a decentralized alternative to cloud computing giants, had topped the pivotal $10 mark after a 4% increase.
The protocol uses blockchain technology to create a network of computers that can host websites and applications, aiming for faster speeds and lower costs.
Internet Computer Price Poised For 77% Wedge Breakout
After defending support at $6, ICP made a significant rebound attracting the attention of traders who backed the uptrend earlier this week. A falling wedge pattern in the daily chart meant that Internet Computer had more potential.
A falling wedge forms when price drops between converging down trendlines. Traders look to buy if the price breaks above the wedge, expecting a trend reversal.
Lower volume during the wedge suggests buying pressure building for a potential breakout. Trading volume significantly increases after breakout.
In the case of ICP price, traders are hoping for a 77% breakout target of $17—equal to the height of the pattern.
Following the breakout, Internet Computer price traded at $10.54 but the momentum waned on encountering the 200-day Exponential Moving Average (EMA).
Currently, ICP holds between the 50-day EMA support at $9.25 and the 200-day EMA resistance at $10.59. Traders will look for the next breach of this resistance before adding to their positions.
On top of the wedge breakout, a buy signal from the Moving Average Convergence Divergence (MACD) indicator could further drive the Internet Computer price rally to the $17 milestone.
An incoming golden cross pattern will further reinforce the bullish grip. A golden cross appears when a short-term moving average decisively crosses above a long-term one.
This signals a potential trend shift from down to up. Traders might buy after the cross, aiming to capture the potential price increase. A golden cross often signals a medium-term to long-term bullish outlook.
Conversely, if ICP closes the day before the $10 pivotal level the uptrend to $17 could take a breather, allowing for re-accumulation before the next major move. In such a case, support at $8 and $6 will come in handy to reduce the impact of the correction.
Frequently Asked Questions (FAQs)
1. What is Internet Computer?
2. Will ICP see new all-time highs?
3. Is it a good time to buy ICP?
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