Internet Computer (ICP) has been on the rise since Feb. 24 and has broken through both short and long term resistance levels.
ICP has fallen below a bearish resistance line since reaching a high of $87 on September 6. The downward move led to a low of 14.28 on Feb. 24 (green icon). Since then, the price has gone up.
After two failed attempts, the price finally broke out (green circle) on Feb. 28 and the line validated as support three days later. Since then, the price has gone up.
The closest resistance area is $29.50. The area previously acted as a support from June to December 2021. Therefore, a breakout above it could significantly accelerate the growth rate.
ICP breaks out
Technical indicators in the daily timeframe support continued upward movement as both the RSI and MACD rise.
In addition, both generated very significant bullish divergences ahead of the continued upward move.
If ICP manages to break out of the USD 29.50 resistance area, the next resistance would be USD 42.50. This is the resistance level of 0.382 fiber retracement and horizontal resistance area.
The two-hour chart shows that ICP has already broken free from a near-term bullish parallel channel.
It may return to validate as support at USD 21.50 (green circle) before resuming its upward movement.
Wave Number Analysis
Cryptocurrency Trader @XForceGlobal tweeted a chart from ICP saying the price could rise to $80
Measured from the September highs, it appears that ICP has completed a five-wave downward movement (black). It also created a falling wedge in the period between November 2021 – March 2022.
Due to the length of this downward move and the resulting breakout, a significant retracement would be expected.
If so, ICP could hit the $51 to $59 area. This is the resistance level of 0.5 – 0.618 fiber tracement and horizontal resistance area.
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