Crypto: Internet Computer (ICP) drops below $16: Crypto analysis of April 17, 2024

After surpassing $20, Internet Computer experienced a decline of over 40%. Let’s explore the future prospects of the ICP price together.

Current State of Internet Computer (ICP)

After reaching a peak at $20.96, the Internet Computer price began a consolidation phase below that level. Indeed, its price fluctuated between $19 and $16. It is noteworthy that the latter price corresponds to the previous peak before the $20 mark. Moreover, it is at the 38.2% Fibonacci retracement level taken from its last bullish impulse. At the time these lines are written, the Internet Computer price is trading around $12. Thus, we can understand that buyers have not maintained their momentum. Nevertheless, it is important to note that ICP experienced a resurgence of buying interest just above its old support, identified around $10.

Although the ICP structure remains bullish, the recent fluctuations have taken its price below its 50-day moving average. The oscillators, as well as ICP itself, unsurprisingly illustrate a market dynamic that has been revised downwards. Naturally, each of these elements casts doubt on the continuation of the cryptocurrency’s trend.

The current technical analysis has been conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of individual traders active since 2017. You will find Lives, educational content, and mutual help around the financial markets in a professional and warm atmosphere.

Focus on Derivative Products (ICPUSDT)

The open interest on ICP/USDT contracts followed the decline in its price. Indeed, there has been a reduction of nearly $60 million in the open interest of perpetual ICP/USDT contracts. The most pronounced and volatile declines were accompanied by significant buyer liquidations. Coupled with a reduced funding rate, this suggests a capitulation of buyers in favor of the short interest during these fluctuations.

The ICP liquidation heatmap over three months reveals that ICP surpassed a notable liquidation area, located around $16. Although a buyer response at this level can be observed, the subsequent selling pressure was too significant. Recently, ICP has rebounded on a subtle liquidation area around $10.5. So far, it seems that a buyer’s interest has been demonstrated. Currently, the most apparent liquidation zones are above the current price, around $14. Higher up, the $16 zone can be noted once again. Below the current price, the $10 zone stands out. If the price were to approach these levels, it could trigger a massive volume of orders, thus increasing the possibility of a period of heightened volatility for Internet Computer. These areas represent significant points of interest for investors.

Possible Scenarios for the Price of Internet Computer (ICP)

• If the Internet Computer price stays above $10, we could anticipate a continuation of the bullish trend up to $16. If this level is breached, the next bullish target could be the $20 threshold. At this point, it would represent an increase of more than 70%.

• If the Internet Computer price fails to hold above $10, a retreat to around $8 could be considered. Should the bearish movement continue, the next support level to consider would be around $6. At that level, the decrease would be about -49%.

Conclusion

Internet Computer has faced selling pressure, erasing its last rise and bringing it back to a former support level. This is explained by the overall decline of the crypto market. Although its underlying trend remains bullish, the recent fluctuations have created a sense of uncertainty regarding the continuation of this trend. Thus, it will be crucial to carefully observe the price reaction at various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant for potential “fake outs” and market “squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also change rapidly due to other more fundamental factors.