The rapid rise of Internet Computer (ICP) since October 2023 has been unprecedented, surpassing key resistance levels along the way.
Internet Computer smashes through resistance
Since April 2022, the ICP token has been trading below a significant long-term horizontal resistance area. However, in November 2022 and October 2023, the price formed two lower lows.
Then, the price initiated an upward movement, triggered by the breakthrough of the descending resistance line. This breakout accelerated the rally, eventually reaching a new high of $16.30. Additionally, this breakout also led to a bullish breakthrough of an important horizontal resistance area.
Source: TradingView
The weekly relative strength index (RSI) is on the rise and currently above the neutral level of 50, indicating a bullish trend. Despite being overbought, there are no signals of bearish divergence that would indicate an imminent decline.
Analysis by industry experts
Experts in cryptocurrency trading and analysis on Platform X are optimistic about ICP’s future.
The House of Crypto, for example, compares ICP to the likes of Bitcoin (BTC) and Ethereum (ETH), touting it as a revolutionary innovation:
“One of the new gems that hasn’t received enough attention yet is $ICP… While $BTC and $ETH have been on the rise for years, $ICP is just getting started. For those with a long-term focus, this is a chance to get into the game early. The coin’s potential is promising, and $ICP is poised to make significant strides.”
Crypto Ninja also considers ICP as their top long-term bet, despite the price already having increased by 450%. Lastly, CryptoMarkets observed a bullish candle following a bearish one, setting a target of $24.50.
ICP forecast: Anticipating a breakthrough of $20
Technical analysis of the daily timeframe reveals a completely parabolic price increase since October. Elliott wave analysis suggests that the price is currently in the fifth and final wave of this parabolic surge (white).
The fifth wave is currently equal in length to the first wave. As the altcoin is trading within a horizontal resistance area, this zone holds potential for a top to form. Additionally, the daily RSI has formed a bearish divergence, potentially signaling a top, although it has not been confirmed yet.
Should a bullish breakout occur, ICP could reach the next significant long-term resistance area at $22, representing a 50% increase from the current price.
Source: TradingView
However, if ICP bounces off the $15.50 level and experiences a bearish parabolic breakout, this could signal the end of the uptrend and potentially push the token down by 40%, towards immediate support at $9.30.
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