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Internet Computer ($ICP) price is at a six-month low at the moment as the broader market bearish cues took the altcoin down.
While the potential for recovery is visible, the heavy bearishness experienced by $ICP could hinder it.
Internet Computer Witnesses Mixed Signals
$ICP price is currently showing signs of potential upward momentum. This comes from the Moving Average Convergence Divergence (MACD) indicator, which is primed for a bullish crossover.
MACD (Moving Average Convergence Divergence) is a technical analysis indicator that shows the relationship between two moving averages of a security’s price. It helps identify trend changes and potential buy or sell signals.
Such a development, expected for the first time in three weeks, typically sparks renewed optimism among traders and investors alike. This bullish signal on the MACD suggests a potential shift towards positive price action. It could potentially attract buying interest and reinvigorate market sentiment surrounding $ICP.
However, despite this encouraging MACD signal, $ICP continues to face significant challenges. This can be seen in the Average Directional Index (ADX), which points to a strong downtrend.
The ADX measures the strength of a trend, and generally, values above the threshold of 25.0 suggest a strong active trend. Its current reading of 48.8 suggests that the prevailing downtrend in $ICP’s price is robust.
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This could potentially counteract the bullish crossover on the MACD. This divergence between the two indicators highlights the importance of cautious optimism.
$ICP Price Prediction: A Recovery Before Recovery
$ICP price trading at $8.2 just bounced off the support at $7.6 support level and is attempting to breach $8.5. If this barrier is broken, the altcoin could have a shot at rising further. However, in order to initiate a solid recovery rally, the crypto asset would need to reach $10.8 first.
Positive cues could support the altcoin’s rise once $10.8 is flipped into support. However, countering signals could keep it under $9.8, a resistance tested multiple times in the past, which might delay any potential recovery.
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Furthermore, if the breach fails completely, a drawdown to $8.5 or $7.6 is possible. Losing the latter support would invalidate the bullish thesis, resulting in a drop to $6.0.