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A 40% bullish breakout awaits Internet Computer (ICP) on falling wedge formation

A 40% bullish breakout awaits Internet Computer (ICP) on falling wedge formation
Image by LoganArt from Pixabay

Key Internet Computer takeaways

  • Internet Computer prices poised for a bullish breakout according to its charts.
  • ICP, its native token, is currently in a bearish downtrend with prices in a falling wedge pattern.

NEW DELHI (CoinChapter.com) — The Internet Computer (ICP) token has been declining since its launch in May 2021, with only a few green candles amidst the red ones on its daily chart. However, after crashing by almost 95%, ICP price charts forecast an upward rally for the token.

Created by the Dfinity Foundation, ICP may target a 40% boost after bouncing off its immediate support levels soon.

Forecast-Forecast

ICP has lost 94.28% of its value since its launch, going from $630 on May 10’s open to July 13’s low of $36.002. Moreover, the cryptocurrency seems to be in almost continual downside momentum.

But there appears a catch in the latest downside move, for it appears to be forming a classic bullish reversal structure, known as Falling Wedge. In detail, the technical pattern forms when the price fluctuates inside a pair of falling trendlines that would converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.

Internet Computer, A 40% bullish breakout awaits Internet Computer (ICP) on falling wedge formation
ICP’s price trends and Fib levels on the 2-hour chart. Source: ICPUSD on Tradingview.com

The 50-2H (Violet), 100-2H (Green), and 200-2H (Yellow) Moving Average trend lines are above ICP’s price trends. Thus, the forecast is bearish in the short, mid, and long term. Moreover, the 100-2H and 200-2H MA lines have formed a death cross, which may dent investor confidence. A short-term MA trend line moving below a long-term MA trend line creates a death cross.

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For now, the token’s prices are moving towards its immediate support at $34.63. Resistance for ICP lies at the 61.8% Fib retracement level of $40. The Fibonacci Retracement Levels help forecast support and resistance levels for an asset. Once ICP breaks above the upper trend line, bulls will first target the $40 resistance level. Additionally, if ICP flips the $40 resistance level into support, the breakout will continue upwards, going for the resistance at the 31.8% Fib level of $47.656, a gain of almost 40% from ICP’s support level.

Internet Computer, A 40% bullish breakout awaits Internet Computer (ICP) on falling wedge formation
Internet Computer’s momentum oscillators on the 2-hour chart. Source: ICPUSD on Tradingview.com

MACD for the Internet Computer token is bearish for now, with the MACD line (difference between 12 EMA and 26 EMA on the 2-hour chart) is moving below the MACD signal line (9-2H EMA of MACD). However, the MACD histogram, which plots the difference between MACD and MACD signal line, is declining, which indicates a trend reversal in favor of bulls soon.

The relative strength index for ICP has a value of 32.11. However, it is moving downwards towards the oversold/undervalued levels. Thus, it provides further support to the chances of a bearish trend reversal.

Also Read: Fidelity’s crypto arm goes on a talent hunting spree; to expand staff by 70%

At the time of writing, ICP was trading at $35.75, down 4.01% on the day.

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Anshuman Roy - CoinChapter
Anshuman Roy

A Delhi based content writer, I did my bachelors in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.

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