Can 20 EMA Prevent a Possible Downfall To $6.77?

The May month sell-off brought Internet Computer(ICP) price to a low of $6.07 and initiated a minor consolidation. Today, the altcoin is down by 11% and reverted from the $9.5 range resistance. The possible downfall may plan a revisit to $6.77 support.

Key points: 

• The ICP traders await a range breakout to begin a new recovery rally.
• The 20 EMA could stall the expected the downfall
• The intraday trading volume in the ICP is $409.1 Million, indicating a 203% gain.

Source- Tradingview

The ICP price three-month consolidation from late January to April ended in the seller’s favor as traders witnessed a breakdown of $15.5 support on April 26th. Furthermore, the May month’s blood intensified the downfall and tumbled the price by 55.6%.

The ICP price plunged to a low of $6.07 on May 12th and continued the range-bound rally ever since. The altcoin has twice retested the overhead resistance of $9.6 and bottom support at $6.77, suggesting the traders respect this range.

Today, the coin price turned down from $9.6 resistance with a long bearish candle of 11%. This reversal should plunge the price 18.5% lower to $6.77 support.

Alternatively, a possible breakout from this resistance level would kickstart a relief rally and drive the ICP price to immediate resistance of $11.5, followed by $15.5.

However, the $15.5 resistance aligned with the 0.5 Fibonacci retracement level indicates an important level for coin holders, whose breakout could share a better opportunity for a genuine recovery rally.

Technical indicator

Two dynamic resistance consisting of descending trendline and 20-day EMA had carried the last two-month downfall. However, the recent price jump has breached these resistances, and they should act as viable support.

The daily-RSI indicator undermines the minor consolidation with its parabolic rally. This divergence increases the possibility of a $9.6 breakout.

• Resistance levels- $9.5, and $11.5.
• Support levels are $6.77 and $6