Why Did Internet Computer (ICP) Price Increase by 90% Last Week?

The Internet Computer (ICP) price reached a new yearly high of $11.90 on December 16 but has fallen since.

Despite the decrease, ICP still trades above an important horizontal area. Can it validate it as support and resume its ascent? Let’s find out!

Internet Computer Moves Above Long-Term Resistances

The ICP price has increased since falling to a low of $2.82 in September . The upward movement was gradual initially but accelerated over the past two weeks. Last week, ICP increased by 90%.

This acceleration caused a breakout from two resistance levels, one diagonal and the other horizontal. On December 16, the ICP price reached a new yearly high of $11.90 . This was the highest price since May 2022.

Despite a slight decrease this week, the altcoin trades above both resistances.

ICP/USDT Weekly Chart. Source: TradingView

Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. The weekly RSI is increasing and is above 50, both signs of a bullish trend. 

What are the Analysts Saying?

Cryptocurrency analysts on X have a mixed view of the future trend. 

Nihilus is bearish in the short term because of a potential breakdown from an ascending support line . He gave a target near $8 once the trend line breaks.

ICP/USDT 5-Minute Chart. Source: X

Tommyinvests is bullish. He stated:

1 GIGABYTE of data costs $5 on ICP.

The same on Solana costs $800,000

The same on Ethereum costs $15,494,409

Everyone will know the name #ICP

This ecosystem deserves it.

Finally, icircle believes that ICP will reach $100 in 2024 and $1,000 in 2025.

ICP Price Prediction: Can Breakout be Sustained?

The shorter-term six-hour chart gives a mixed reading.

The price action shows that ICP broke out from an ascending parallel channel. This indicates the trend is bullish, and the upward movement is impulsive.

However, ICP also created a double top (red icons), which is considered a bearish pattern . The double top was combined with a bearish divergence in the six-hour RSI. If the decrease continues, the 0.382 Fib retracement support level will be at $8.47, nearly 10% below the current price.

However, since there is no horizontal support at the level, the altcoin may fall by 20% and reach the 0.5 Fib retracement support at $7.40.

ICP/USDT Daily Chart. Source: TradingView

Despite this bearish ICP price prediction , a strong bounce at the 0.382 support can trigger a 40% increase to the yearly high of $11.90.

For BeInCrypto‘s latest crypto market analysis,  click here.