- Strong buying pressure pumped Internet Computer Protocol (ICP) prices by 42% since July 20
- Solid fundamentals at work behind the rally
- ICP/USDT pair was trading within a bullish wedge formation since June 28
JAIPUR (Coinchapter.com) – Internet Computer’s native blockchain asset is riding high on explosive bullish support. The Zug-based Dfinity Foundation’s smart contract underpinning cryptocurrency rallied by 42% since bottoming at $26.75.
After achieving a local high of $59.8 on June 29, ICP/USDT was trading within a bullish wedge formation. However, the pair finally broke out of the downtrend when bulls assumed control in the morning London session on July 20.
Internet Computer 4-Hour Technical Setup
ICP/USDT is now trending well above the 50-day and 200-day MA waves. In addition, the pair successfully broke even above the 20-day exponential moving average (EMA) and has printed multiple higher highs confirming a solid bullish trend.
ICP bulls pushed the asset to retest the 161.8% Fibonacci extension level in the ongoing run-up, which coincides with $45.59. However, the $54.19 (261.8% Fibonacci extension level) remains a crucial resistance for the near term.
If bullish pressure sustains beyond $54.19, then ICP/USDT retesting the $62.79 (361.8% Fibonacci extension level) price point is a plausible possibility.
Nonetheless, the RSI (Relative Strength Indicator) and MACD (Moving Average Convergence Divergence) waves are giving off ‘overbought vibes’. The 4-hour ICP/USDT chart shows the smart contract token tapping 70, the upper bound of the RSI band. The last time this scenario played out, Internet Computer prices crashed by 55%.
Traders/investors looking to place buy bids or going long on ICP should assess the situation carefully before proceeding.
Fundamentals Based Rally
A flurry of fundamental developments has helped pushed Internet Computer prices on a bullish trajectory. For starters, the smart contract blockchain achieved a milestone of surpassing 100 million blocks on Friday, July 23, morning London time.
Before the above took place, a slew of decentralized app (dapp) launches already got bulls excited about ICP’s long-term prospects. DSCVR is a decentralized version of Reddit, Fleek, a decentralized web hosting app, Distrikt, a decentralized professional network, and Origyn, which is helping with blending luxury goods with NFTs.