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The Internet Computer (ICP) price has increased swiftly in the past four weeks, culminating with a high of $16.30 today.
The upward movement since October 2023 has been entirely parabolic, causing breakouts from pivotal resistance levels.
Internet Computer Breaks Out Above Resistance
The ICP price has traded below a long-term horizontal resistance area since April 2022. While doing so, the price created two lower lows, on November 2022 and October 2023, respectively.
The ICP price then began an upward movement, catalyzed by a breakout from a descending resistance trend line. The rally accelerated after the breakout, leading to a high of $16.30 today. It also caused a breakout above an important horizontal resistance area.
When evaluating market conditions, traders use the Relative Strength Index (RSI) as a momentum indicator to determine whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The weekly RSI is increasing and above 50, which is a sign of a bullish trend. Even though the indicator is overbought, there is no bearish divergence to warn of an impending decrease.
What do Analysts Say?
Cryptocurrency traders and analysts on X positively view the future ICP price trend.
The House of Crypto compares ICP to Bitcoin (BTC) and Ethereum (ETH), suggesting it is a groundbreaking innovation. He tweeted:
One gem that’s yet to garner its due attention is $ICP. Considered the unsung hero in the #crypto space, it stands out with three groundbreaking innovations. While $BTC and $ETH have had their run for years, $ICP is just beginning its journey.
For those with a long-term perspective, there’s a sense of being early to the game. The potential ahead is promising, and $ICP is poised to make a significant impact.
Crypto Ninja considers ICP a gem and said that it is his biggest bet for the long term despite having already increased by 450%. Finally, CryptoMarkets noted a bullish candlestick after a bearish one, giving a target of $24.50.
ICP Price Prediction: When Will Price Break $20?
The technical analysis of the daily time frame shows that the ICP price increase since October has been completely parabolic. The wave count suggests that the price is in this parabolic increase’s fifth and final wave (white).
Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.
Currently, wave five has the same length as wave one. Since the altcoin trades inside a horizontal resistance area, this is a potential level for a top. Furthermore, the daily RSI has generated a bearish divergence, a sign of a potential top. Nevertheless, the bearish divergence has not been confirmed yet.
If the ICP price breaks out, it can reach the next long-term resistance area at $22, 50% above the current price.
Despite this bullish ICP price prediction, a rejection from the $15.50 area and a breakdown from the parabola will mark the end of the upward movement. Then, ICP can fall by 40% to the closest support at $9.30.
For BeInCrypto‘s latest crypto market analysis, click here.