Internet Computer (ICP) Breaks Out From 176 Day Resistance Line

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Inter­net Com­put­er (ICP) has been increas­ing since Feb 24 and has bro­ken out from both short- and long-term resis­tance levels.

ICP has been decreas­ing under­neath a descend­ing resis­tance line since reach­ing a high of $87 on Sept 6. The down­ward move­ment led to a low of 14.28 on Feb 24 (green icon). The price has been mov­ing upwards since.

After two unsuc­cess­ful attempts, the price final­ly broke out (green cir­cle) on Feb 28 and val­i­dat­ed the line as sup­port three days lat­er. The price has been mov­ing upwards since. 

The clos­est resis­tance area is at $29.50. The area had pre­vi­ous­ly act­ed as sup­port from June to Dec 2021. There­fore, a break­out above it could great­ly accel­er­ate the rate of increase.

ICP breaks out

Tech­ni­cal indi­ca­tors in the dai­ly time-frame sup­port the con­tin­u­a­tion of the upward move­ment, since both the RSI and MACD are increasing. 

In addi­tion to this, both gen­er­at­ed very sig­nif­i­cant bull­ish diver­gences pri­or to the ongo­ing upward movement.

If ICP man­ages to break out from the pre­vi­ous­ly $29.50 resis­tance area, the next resis­tance would be at $42.50. This is the 0.382 fib retrace­ment resis­tance lev­el and a hor­i­zon­tal resis­tance area.

ICP increase
Chart By TradingView

The two-hour chart shows that ICP has already bro­ken out from a short-term ascend­ing par­al­lel channel. 

It is pos­si­ble that it returns to val­i­date it as sup­port at $21.50 (green cir­cle) before resum­ing its upward movement.

Short-term breakout
Chart By TradingView

Wave count analysis

Cryp­tocur­ren­cy trad­er @XForceGlobal tweet­ed a chart of ICP, say­ing that the price could increase to $80

ICP movement
Source: Twit­ter

Mea­sur­ing from the Sept highs, it seems that ICP has com­plet­ed a five wave down­ward move­ment (black). It also cre­at­ed a descend­ing wedge in the peri­od between Nov 2021 – March 2022.

Due to the length of this down­ward move­ment and the ensu­ing break­out, a sig­nif­i­cant retrace­ment would be expected. 

If so, ICP could reach the $51 to $59 area. This is the 0.5 – 0.618 fib retrace­ment resis­tance lev­el and a hor­i­zon­tal resis­tance area.

ICP Wedge
Chart By TradingView

For BeInCrypto’s pre­vi­ous Bit­coin (BTC) analy­sis, click here

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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