Will Internet Computer Price Hit $20? Chart Pattern Provide Insight

The Internet Computer (ICP) price recently experienced a notable pullback, dropping from a high of $16.3 to a low of $10.3, a 36.6% decline. This decrease coincided with low transaction volumes, suggesting it might be a short-term correction rather than a long-term trend reversal. Currently, the ICP price is testing the support level of a previously breached ‘cup and handle’ pattern, which could indicate an opportune moment for traders to enter the market.

Is ICP Price Heading to $15?

• A bullish reversal from the $11 mark with an engulfing candle signals an uptrend continuation.
• The ICP price above daily EMAs(20, 50, 100, and 200) indicate an aggressive uptrend
• The intraday trading volume in ICP is $10.2 Billion, indicating a 78% gain.

On the daily time frame chart, the Internet Computer coin displays a bullish reversal ‘Cup-and-Handle’ formation that has been developing over the last 18 months. This pattern is a crucial indicator for market accumulation, potentially signaling a major shift in trend direction. 

The recovery trend, which began in mid-October, saw the coin’s price escalate dramatically from $2.9 to $16.3, marking a 457% increase. This surge resulted in a decisive breakout from the neckline resistance of the pattern on December 30th, suggesting the coin is moving out of a prolonged accumulation phase and could be primed for a significant breakout.

Last week’s pullback to the $11 level appears to be a retest of the breached neckline, now serving as a support level. The subsequent 15% increase in price today indicates active accumulation by buyers at these lower levels, reinforcing the likelihood of a sustained uptrend. 

If the ‘Cup-and-Handle’ pattern continues to hold, there’s potential for the ICP price to increase by an additional 56%, possibly reaching the key psychological threshold of $20.

Volume Tells Tale of Sustainable Recovery

In a recent X(formerly Twitter) post, the renowned trader Jim Roppel highlighted an interesting volume-price action relationship in ICP price. He mentioned the asset with super low volume during the pullback, while a significant surge in trading during the rise as happened today with an intraday gain of 20%

This pattern indicates the traders are less interested in trading this asset for short selling, and more focused and confident in long entry opportunities.

• Exponential Moving Average: The 20-day EMA provides suitable pullback support for buyers.
• Vortex Indicator: A bullish crossover state between the VI+ and VI0 slope reflects a recovery trend in active.

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