ICP Bulls To Propel Price to $10: Here Are the Challenges
The Internet Computer (ICP) token has experienced a significant rebound from its lowest point in 52 weeks, which was $6. In the past two weeks, it has seen a revival of over 60%. Currently, the token price has reached a critical hurdle of $10, the 200-day EMA zone.
While buyers have been accumulating the token during its base, it has now entered a reversal zone where a rejection could potentially occur. The short-term leading indicators do not appear to be favoring straightforward buying traction, suggesting that a slight dip may be on the horizon.
Despite the strength indicated by the token being comfortably placed above the 20-day and 50-day EMAs, it has encountered its pivot hurdle of the 200-day EMA, increasing the likelihood of a rejection. Bears have positioned themselves around the $10 mark, waiting for an opportunity to trap the bullish investors.
As of now, the ICP price is trading at $9.96 with a 1.36% intraday surge, indicating neutrality on the charts. It has shown a monthly return ratio of 10.20% and a yearly return ratio of 140.20%, reflecting a short-term uptrend.
The ICP/BTC pair is currently at 0.000153 BTC, and the market cap stands at $4.65 billion. Analysts have a neutral stance and suggest that the ICP price may gain momentum once it surpasses the $12 mark. In terms of market cap, ICP ranks 26th and has a total supply of 521.20 million tokens, with a volume-to-market cap ratio of 0.0326.
While the ICP price recently broke its downward trendline hurdle of $9 and displayed a bullish swing, it has not yet surpassed the cluster of $10, where the 100-day and 200-day EMAs are located. Javon Marks tweeted that ICP has gained bullish momentum and could continue its upsurge, indicating optimism regarding the price movement.
Significant resistances may act as barriers until the token surpasses this level, potentially leading to consolidation in the price action ahead. The RSI curve has reached the overbought zone, suggesting a possible dip in the token price. However, the trend reversal remains intact, with a new higher high being observed.
On-chain metrics show a positive uptick, as the Weighted Sentiment data has spiked by over 4% and entered the positive region, suggesting favorable upside potential. The Social Dominance data also indicated an increase of over 3%, reflecting neutral investor interaction on social media platforms.
Regarding liquidations, long liquidations have increased to $95k, while short liquidations stand at $10k. This data indicates that investors have taken advantage of the bounce to secure their gains, potentially resulting in a shift in market dynamics.
The immediate support levels for the ICP token are $9.20 and $8.80, while the key upside hurdles are around $10.20 and $11.80.
If the ICP token can sustain its position near $10 and successfully cross this barrier, it is anticipated that a significant short-covering flow would propel the price towards the $12 mark in the near future.