Internet Computer (ICP) reaches $20 threshold: Crypto analysis of April 3, 2024

Internet Computer surpasses its last peak to reach $20. Let’s examine the future prospects of the ICP price together.

Current Situation of Internet Computer (ICP)

After reaching a high of $16.30, the price of Internet Computer (ICP) entered a consolidation phase, stabilizing within a range between this last price level and $10.30. At the end of March, ICP broke above this range, thus reaching a new peak just above $20. Each of these levels had been highlighted in the analysis of March 14, 2024, confirming their importance. 

As these lines are written, the price of Internet Computer is trading around $18.5. It seems that the cryptocurrency has retracted to enter a new period of consolidation. This one occurs at the level of the 38.2% Fibonacci retracement, calculated since the last ICP rise from $10.3. This demonstrates that buyer interest persists despite the fact that selling pressure has set in. This resilience finds new confirmation as Internet Computer trades again above its 50-day moving average. This may prove comforting to the idea of a continuation of the current trend. Indeed, the cryptocurrency’s momentum has naturally rebounded, as illustrated by the oscillators as well as the price of ICP itself. Each of these elements indicates that the technical outlook could support a prolonged bullish trend.

The current technical analysis was carried out in collaboration with Elie FT, an enthusiast investor and trader in the cryptocurrency market. Currently a coach at Family Trading, a community of thousands of proprietary traders active since 2017. You will find Live sessions, educational content, and mutual assistance on financial markets in a professional and friendly atmosphere.

Insight into Derivatives (ICPUSDT)

The open interest on ICP/USDT perpetual contracts has followed the direction of its price, which has more than doubled since the cryptocurrency’s rebound from $10. This increase was accompanied by very slight liquidations, mostly of short positions, as well as a slight rise in the funding rate. This indicates that investor interest in ICP/USDT contracts was mainly oriented towards buying. Nonetheless, it can be observed that this buying interest is facing new selling pressure since the appearance of Internet Computer’s consolidation. Indeed, this has triggered a decrease in the open interest related to the cryptocurrency, with small buy liquidations and, most recently, a decrease in the funding rate.

Internet Computer’s liquidation heatmap over one month reveals that ICP recently crossed a significant liquidation area. This bounce has thereby brought to light a buying interest for the cryptocurrency. Currently, the most visible and closest liquidation zone to the current price lies between $15 and $16. Below that, there are also zones around $13, and even lower, those at $10. If the price approaches these levels, it could trigger a massive volume of orders, increasing the possibility of a period of heightened volatility for Internet Computer. These zones represent major points of interest for investors.

Hypotheses for the Future Price of Internet Computer (ICP)

• If the price of Internet Computer maintains above $16, we could anticipate a continuation of the bullish trend up to $21 . If this level is surpassed, the next bullish target could be the threshold of $25. At this stage, it would represent an increase of over 34%.

• If the price of Internet Computer fails to maintain above $16, we could consider a retreat around $13 . In case of the continuation of the bearish move, the next support level to consider would be around $10. At this level, the decrease would represent about -43%.

Conclusion

Internet Computer has proven its resilience in the face of consolidation phases, recently surpassing critical thresholds highlighted by previous analyses.  This dynamic reasserts the sustained interest in ICP, even in the presence of volatilities, and is promising for the continuation of the upward trend. However, it will be crucial to closely observe the price’s reaction at various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant towards potential “fake outs” and “squeezes” in the market in each scenario. Finally, remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can, furthermore, evolve rapidly based on other more fundamental factors.