Will ICP 12% Surge Lead to Further Upside or a Price Reversal?

• ICP surged 12%, hitting a 39-day high at $9.09.
• Resistance at $8.90 could lead to a 20% price drop.

The cryptocurrency market has been erratic over the past week, with bearish trends dominating. Notably, it’s become uncommon to see double-digit gains among the top altcoins. Despite a modest decline of 0.62% in overall market cap and a 7.24% drop in trading volume, today’s standout performer is Internet Computer’s (ICP) native token, which surged by 12%.

ICP reached a 39-day high of $9.09 in the past 24 hours, fluctuating between $7.74 and $9.09. Currently, it is trading at $8.68, with trading volume up by 191%. Despite facing bearish pressure since late last month, it has rallied with a 21% increase over the past week.

However, ICP encounters strong resistance near the $8.90 level. Previously, when ICP approached this price point, it faced significant selling pressure, leading to a sharp decline of nearly 20%.

Moreover, On-chain metrics support ICP’s bullish outlook. The Coinglass ICP Long/Short ratio is at +1.019, indicating positive market sentiment. Additionally, it’s futures open interest has risen by 21% in the last 24 hours, reflecting an increase in long positions.

Can ICP Bulls Sustain The Momentum?

The daily chart reveals ICP in a bullish trend, with the 9-day Exponential Moving Average (EMA) at $7.92. The Relative Strength Index (RSI) is at 47, suggesting the token is approaching oversold conditions.

If the bullish momentum continues, the next resistance levels to watch are $9.55 and $10.90. Conversely, persistent bearish sentiment could drive the price down to $7.70, with potential support at $6.23.

As it navigates these key resistance levels, its ability to maintain momentum will be critical. Traders and investors are closely watching for signs of sustained strength or potential reversals in the coming days.

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