The Internet Computer is an open-source blockchain project powered by smart contracts. High speed, incredible scalability, and affordable transaction costs are the distinguishing features of this network. It also provides a robust platform for building decentralized apps, introducing advanced versions of existing Ethereum dApps, and facilitate on-chain transactions. ICP is the native token of this ecosystem and its technical analysis is as follows:
On May 25, 2021, ICP opened at $147.78. On May 31, 2021, ICP closed at $114.65. Thus, in the past week, the ICP price has decreased by approximately 22%. In the last 24 hours, ICP has traded between $111.05-$117.11.
Day-Ahead and Tomorrow
Currently, ICP is trading at $112.48. The price has decreased from the day’s opening price of $114.65. Thus, the market seems bearish.
The MACD and signal lines are positive. Thus, the overall market momentum is bullish. However, a bearish crossover by the MACD line over the signal line has occurred. Plus, both the lines are close to the zero line and may turn negative soon. Hence, we can expect the price to decline further.
Currently, the RSI indicator is at 45%. It faced rejection at 37% and rose to this level. Thus, buying pressures are slowly building up. However, as of now, the selling pressures are still strong and hence the price may continue to fall for some time.
However, the OBV indicator is steadily rising. Thus, buying volumes are higher than selling volumes. High buying activity will exert upward pressure on the ICP price. There is bullish divergence here. Hence, a bearish trend reversal may occur in some time.
In a nutshell, when we look at all three indicators together, we can say that the bearish trend may start becoming weaker after some time. However, we have to wait and watch if an intermittent price rise is a temporary market corrective action or indicative of a trend reversal.
ICP Technical Analysis
Currently, the price is below the Fibonacci pivot point of $114.27. The price may soon fall below the first and second support levels of $111.95 and $110.52, respectively. Thereafter, we have to wait and watch, if the price starts rising.
The price has tested and fallen below the 38.2% FIB retracement level of $113.36. It may soon fall below the 23.6% FIB retracement level of $112.48. By day end, if the price does not retest and break out of these levels, then the bearish trend is likely to continue tomorrow as well.