TLDR:
Internet Computer (ICP) price broke above a descending trendline, gaining over 14% in a day
ICP surged 11% amid broader crypto market correction, reaching around $8.50
On-chain metrics like rising open interest and long-to-short ratio support bullish outlook
Technical analysis suggests potential for further gains, with some analysts setting ambitious price targets
ICP’s burn rate increased coinciding with the price surge, potentially reducing supply
Internet Computer (ICP), a blockchain-based decentralized network, has recently caught the attention of cryptocurrency investors and analysts with its impressive price performance.
While the broader crypto market experienced a slight correction after a strong start to the week, ICP bucked the trend by posting double-digit gains.
On Tuesday, ICP’s price broke above a descending trendline that had been in place since mid-April, signaling a potential shift in market sentiment.
The asset gained over 14% in a single day, closing above its daily resistance level of $7.86 and its 50-day Exponential Moving Average (EMA) at $7.97. As of Wednesday, ICP was trading around $8.50, representing an 11% increase amid the general market cooldown.
ICP Price at Coingecko
Several factors appear to be contributing to ICP’s strong performance. On-chain metrics paint a bullish picture, with Coinglass data showing an increase in futures open interest from $35.87 million on Monday to $47.21 million on Wednesday.
This rise in open interest suggests new money entering the market and additional buying pressure, which typically supports price appreciation.
The long-to-short ratio for ICP on Binance has remained above 1 since August 27, indicating that more traders are betting on the asset’s price to rise. As of the latest data, this ratio stands at 1.29, reinforcing the bullish sentiment surrounding ICP.
Trading volume has also seen a significant uptick, with data from crypto-aggregator DefiLlama showing a 73% increase in daily trading volume from Saturday to Wednesday. This surge in volume, reaching $2.38 million on Wednesday, suggests growing interest and liquidity in the ICP ecosystem.
Technical analysts have identified promising signs on ICP’s chart. The asset has broken out of two significant downtrends, one in late 2022 and another in late 2023, potentially signaling the end of its prolonged bear market.
A “Hidden Bullish Divergence” has been observed, which often precedes upward momentum. Key indicators such as the Relative Strength Index (RSI) and On-Balance Volume (OBV) support the bullish case, showing building momentum and buying pressure.
Adding to the positive momentum, ICP’s token burn rate has reportedly increased, coinciding with the price surge. This reduction in supply could potentially drive up demand and contribute to price appreciation.
While the current price hovers around $8.50, some analysts have set ambitious targets for ICP. Crypto analyst Javon Marks shared a viral chart suggesting a potential price target of $79.572, representing a 777% increase from current levels. However, it’s important to note that such predictions should be approached with caution.
$ICP (Internet Computer)’s prices are responding positively here to a Hidden Bull Divergence confirmation and they can be in the early stages of a massive continuation towards the $79.572 target!
With this target in-play, an over 777% run to reach it could take place… https://t.co/hHfxrushaU pic.twitter.com/NctxfYumjM
— JAVONMARKS (@JavonTM1) September 10, 2024
As of the latest data, ICP’s market statistics paint an interesting picture. The asset has a market capitalization of approximately $4 billion, with a 24-hour trading volume of $175 million. ICP currently holds a market dominance of 0.20% and has seen a 24-hour price change of +10.30%.
Despite the recent gains, it’s worth noting that ICP is still down significantly from its all-time high of $497.71, reached on May 10, 2021. The current circulating supply stands at 469.89 million tokens, out of a maximum supply of 488.51 million.
Sustained growth will depend on continued market confidence and positive on-chain metrics.
Short-term price targets in the $20-$25 range align with recent cycle highs, but reaching previous peak levels would require significant bullish pressure and improved macroeconomic conditions.
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