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.
The post Internet Computer (ICP) Price Analysis: Slow Rebound From Six-Month Low appeared first on BeInCrypto.
