Internet Computer (ICP) is trading near a critical $2.30 support level, while its 3D chart continues to reflect a long-standing descending channel. While a bearish trend prevails, the recent stabilization suggests a potential trend reversal or relief rally toward higher boundaries.
According to the crypto analyst Butterfly, a bullish breakout requires reclaiming the mid-channel resistance at $3.30, accompanied by a surge in volume, to invalidate the current downward trajectory.
Long-term targets focus on the channel’s upper trendline near $6.00. Beyond that, major resistance levels at $11.50 and $16.50 remain the primary goals.
Conversely, a breakdown below the $2.00 floor would signal further depreciation toward the psychological support of $1.23.
Also Read: Internet Computer (ICP) Falling Wedge Breakout Signals Rally Toward $9
On the weekly chart on TradingView, Internet Computer’s Relative Strength Index is at 40.29. This reflects a bearish sentiment. It is below the signal line at 41.19.
This also reflects a bearish sentiment. However, it is not yet oversold. The bearish trend indicates that the bears still have the momentum.
The MACD is at a small positive figure of 0.01417, whereas the signal line is still down at -0.62783. The close relationship between these figures suggests a period of consolidation.
Without a significant expansion of the histogram, there is not enough momentum for a trend to break through.
The momentum of ICP is gaining traction on various fronts. The use case of ICP is increasing, given that it can be used to purchase groceries at SPAR.
The network effect of ICP is increasing, with over 134,570 new canisters registered. This could be a positive factor that could cause the price to increase.
Moreover, on-chain data support the bullish narrative. In terms of supply, over 223,550 ICP have been burned this year, while developer activity has reached an all-time high, which is positive for long-term prospects and the potential to continue growing prices.
ICP is at a crossroads around the $2.30 support level. Its next directional move will determine whether the pressure continues to decline or whether a brief period of recovery begins to take shape.
If it can break above $3.30, it could be an indication that a genuine shift in the structure of its trend is beginning to take shape.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Internet Computer (ICP) Signals Upside Move With $3.21 Target in Sight
