Internet Computer’s (ICP) price could be seeking to extend its recent losses after falling 5% in the last 24 hours. BeInCrypto found this inference after examining the token’s technical and on-chain status.
At press time, ICP trades at $9.03. However, holding on to the $9 region in the coming days may be a herculean task, and here is why.
Warning Signs for Bullish Internet Computer Investors
One indicator that has been crucial to ICP’s price increase is the Money Flow Index (MFI). The MFI is a technical oscillator that employs volume and price to measure trading pressure. If the reading increases, it means buying pressure is rising; and when it drops, selling volume is dominant
However, the same indicator also detects overbought and oversold conditions. Ratings at 80.00 or above indicate that an asset is overbought, while those at 20.00 or below indicate that it is oversold.
On the daily Internet Computer chart, the token was overbought on July 21, and after the price increase on July 26, it reached the same condition. Consequently, this led to a price retracement, and as more money flows out of the ICP market, the price may continue to drop.
Read More: Internet Computer (ICP) Coin Explainer for Beginners
Seven days ago, BeIncrypto reported that the correlation between ICP and Bitcoin (BTC) is key. The current price trend shows that the correspondence still stands, as the BTC price has also dropped.
Despite the bearish bias, on-chain data from Santiment shows that the sentiment around cryptocurrency is not pessimistic. The Weighted Sentiment, which measures the comments online about a project, shows proof of this.
Three days ago, the Weighted Sentiment reading was in negative territory, indicating a gloomy broader market outlook. But at press time, it is in the positive zone, suggesting that ICP holders are getting confident about the token’s short-term potential.
However, sentiment alone won’t trigger a price increase for the token. Hence, it is necessary to analyze ICP’s short-term potential from a technical point of view.
ICP Price Prediction: Will Bulls Hold the Line or Face Defeat?
The daily ICP/USD chart shows that the cryptocurrency formed a rounded bottom between June 16 and July 18. The rounded bottom pattern implies a shift in trend from bearish to bullish.
This technical pattern is one reason ICP climbed to 10.95 on July 22. However, the token has now erased a chunk of those gains. From the chart below, bulls attempt to prevent ICP from dropping below $9.
However, the Cumulative Volume Delta (CVD) is negative. When the CVD is positive, the buying pressure in the spot market exceeds the selling pressure. Since it is negative, it means that sellers are in control, and ICP risks falling.
Read More: Internet Computer (ICP) Price Prediction 2023/2025/2030
Should buyers fail to stop the capitulation, ICP may not be able to resist the downside. If this happens, the price drop below the key support spotted around $8.45. However, if buying pressure increases, ICP could pump into the overhead resistance at $10.28.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
