The Rollercoaster Ride of Internet Computer (ICP)
If you thought rollercoaster rides were only for amusement parks, think again! The Internet Computer (ICP) has been thrilling investors, recently bouncing back from a record low of approximately $14.50. Since that dizzying plunge on February 24, ICP has staged an impressive comeback, rallying over 30%. Heck, it’s making more comebacks than your favorite late-night talk show host!
Breaking Out From the Beach Ball
Taking a closer look at ICP’s daily chart reveals a falling wedge pattern. Picture two descending lines, like those pesky drop-downs on a bumpy road, not inviting but with a hint of hope. As these lines converge, it signals a weakening bearish momentum—sort of like the bears realizing they forgot their bear spray. Traditional analysts are on the edge of their seats, expecting a bullish breakout any moment now.
The Breaking Point: 17.75
For ICP/USD, the breaking point was around $17.75. And guess what? On March 22, it broke above that mark! Since then, it hasn’t just crept along — it has escalated like Channing Tatum in a dance-off. Trading volumes also soared, indicating that excited investors jumped back into the fray. A perfect breakout could even project ICP’s price to over $27 by next month, giving it a nearly 50% leap. Talk about ambitious goals!
But Let’s Not Get Ahead of Ourselves
Now, hold your horses! There’s a chance that as ICP rises, it might stall near $20, a key resistance level shaped by its months of decline. This would still leave investors with a respectable 20% upside before things might get rocky again. Intrigued? You should be! But keep in mind, falling wedges aren’t exactly known for their reliability in springing bullish patterns. Veteran stock market whiz Tom Bulkowski suggests treating these patterns with a healthy dose of skepticism, especially in bear markets.
Bearish Clouds Still Looming
Speaking of bears, ICP has been trudging through a bear market since its almost mythical launch in May 2021, watching its price tumble nearly 90% from around $240. This was largely due to some shady shenanigans at DFINITY, the organization behind ICP, which allegedly dumped tokens while keeping early investors in the dark. Oof! Then there’s the Bitcoin effect: like a shadowy twin, ICP mirrors Bitcoin’s moves—when BTC stumbles, ICP usually follows suit. That’s like being at a party where no one’s having fun, and you feel the need to leave too.
What’s Next for ICP?
Even though ICP is basking in the glory of a falling wedge breakout, it’s still seeking a bullish confirmation. Right now, it’s dancing just below its 50-day exponential moving average (EMA) around $19. This level has acted like a bouncer since September 2021, keeping the price in check. Should ICP fail to break and hold above that EMA, it risks falling back to its former tragic low of around $14—a decline of over 20% from where it stands today. Talk about dramatic twists in the plot!
The author’s views are their own and don’t always align with others in the room. Always do your homework before making bold investment decisions!
