beincrypto.com
Internet Computer (ICP) price is in the deep end of the pool of altcoins, and the outlook is bearish.
The altcoin could form a six-month low if it loses this crucial support established earlier this year.
Internet Computer Investors Turn Skeptical
The ICP price fell victim to the broader market’s bearishness, dropping the altcoin to $10.84. This provoked a strong reaction from ICP holders, who pulled back and changed their tone and behavior entirely.
The Chaikin Money Flow (CMF) indicator shows this change in its downtick below the uptrend line. The CMF indicator measures the accumulation and distribution of an asset over a specified period, using both price and volume to gauge buying and selling pressure.
It ranges between +1 and -1, where values above zero indicate buying pressure and values below zero indicate selling pressure.
In the case of ICP, the indicator noted an uptrend, but the weekend drawdown resulted in CMF falling below the line. This led to a failed breach of the zero line, suggesting the selling pressure is rising.
Furthermore, traders are taking a step back in the futures market, too. Open Interest has observed a sharp decline in the past few days. Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled.
It provides insight into the market’s liquidity and the strength of price trends, with rising open interest often indicating increasing market participation. However, since ICP, OI has dropped by $15 million in barely three days.
Read More: Internet Computer (ICP) Coin Explainer for Beginners
Currently standing at $56 million, Internet Computer investors seem unsure of a positive future for the altcoin.
ICP Price Prediction: A Drawdown at Hand
ICP price trading at $10.84 tests the critical support of $10.83. This support floor has been unbroken since January this year despite five attempts. Thus, a dip below it would mark a six-month low for the crypto asset.
As a result, the ICP price could slip to test $10, and a more intense bearish atmosphere could send it below $10 to test $9 as support.
Read More: Internet Computer (ICP) Price Prediction 2023/2025/2030
But since the altcoin has prevented a drop below this line in the past, it could do the same again. A bounce back would send ICP towards $12, and breaching $12.9 would invalidate the bearish thesis.