newsbtc.com
Internet Computer (ICP) is trading red, hovering around the $5.6 price mark today, May 2, 2023. According to its daily chart, the bearish trend began two days ago, following three-day bullish moves.
The turn in the market sentiment has resulted in the recent plunge in ICP price. Aside from this, the world’s largest cryptocurrency, Bitcoin, is also down by 1.89% over the past 24 hours.
This could also be a factor affecting ICP’s price at the moment. While a reversal is not certain, some technical indicators can show whether or not the chances are high.
Internet Computer (ICP) Price Outlook
Judging from the ICP price of $3.9309 at the start of 2023, the token has made more bullish moves than bearish ones. ICP currently trades at $5.719, showing a 24-hour price decline of 5.99%.
Related Reading: Terra Classic Recent Efforts Could Benefit LUNC’s Growth Potential
The token’s market cap has dropped by 6.50% in the last 24 hours to around $2.46 billion. The trading volume within the same period has also declined by 20.69%, hovering around $60,208,714.
The plummeting value of the trading volume indicates more selling pressure among investors and traders. If this trend continues, ICP may likely see its price fall to the $5 price level before the end of the day.
Moreover, data suggests that the general price prediction sentiment of the Internet Computer token is bearish. Based on its findings, 17 indicators signal a bearish trend, while 11 technical indicators display bullish signals. But let’s consider some major indicators from the daily chart to confirm its potential move further.
ICP Technical Analysis
The price of the Internet Computer token is currently above the 50-day and 200-day Simple Moving Averages. While that is supposed to indicate a buy tendency, the Relative Strength Index (RSI) negates it, as it stands at 50.42. This figure suggests a neutral state in the ICP market but with higher odds of selling pressure.
The token made a Death Cross several days back which lead to a significant drop in its price. The market may create a Golden Cross later on, but this might come after a major decline in its price, considering the interpretation of the technical indicators.
Related Reading: AVAX Smart Contracts Hit 6-Month High – What This Means For Its Price
The chart also shows that ICP’s price fell from a resistance level of $6.339. Crypto traders and investors can expect its price to fall further to hit the closest support level of $4.996. Other resistance and support levels are $7.449 and $4.525, respectively.
Note that even while the technical indicators can be a helpful tool for analysis, investment decisions shouldn’t be made solely based on them. Traders should also consider various factors and risk management strategies.
Featured image from Pixabay and chart from Tradingview