Journalist
Posted:
- ICP maintained its bullish bias despite the price drop
- This decline could be followed by a period of consolidation
Internet computer [ICP] outperformed Bitcoin [BTC] based on the price movement from October 12 to December 16. ICP rose 312%, which is a lot of money, so who cares if the token has a funny name?
By comparison, BTC only advanced 60%, but their market caps are vastly different. In recent days, ICP witnessed a major pullback as bullish momentum weakened.
The rally stopped just short of $12
Source: ICP/USDT on TradingView
Based on the three-month uptrend from $2.87 to $11.9, a series of Fibonacci retracement levels (light yellow) were plotted.
In May 2022, the $12 region had served as support for a few weeks, which could be why ICP stopped there this time. It could also be that the market was extremely overloaded.
The RSI on the 1-day chart reached 90.5 on December 17, a high it has not reached since ICP trading began on Binance. The 80 level has been a limit in previous rallies, underscoring this one as extraordinary.
To the south, the $8.64 and $7.25 were former resistance levels from the weekly time frame. They could serve as support during a pullback, as could the Fibonacci levels of 61.8% and 78.6% at $6.32 and $4.8.
The Open Interest graph was enlightening
Source: Mint glass
As ICP prices skyrocketed, market participants were eager to speculate on the token. This contributed to the Open Interest behind ICP, which saw the trend in the chart skyrocket in December.
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However, the OI started falling along with prices in recent days. This reflected weakened bullish sentiment compared to a week ago.
Still, the OI remained high, but it was unclear whether prices could defend the $8 support level.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
