In a market characterized by consolidation and declines, Internet Computer (ICP) has managed to defy the trend with an impressive 30% surge in its price, closing out 2023 on a high note.
According to data from CoinMarketCap, ICP’s price witnessed a substantial increase of 29.10% within the last 24 hours, hinting at the possibility of ICP emerging as one of the best-performing assets in the year’s final days.
Bullish pennant formation by ICP
The remarkable surge in ICP’s price did not surprise ZAYK Charts, an analyst known for their insights into the cryptocurrency market. ZAYK Charts pointed out that ICP had formed a bullish pennant pattern on the 4-hour chart, setting the stage for a potential upward move.
A bullish pennant pattern typically occurs when an asset consolidates between converging support and resistance lines before experiencing a strong upward breakout. Recognizing this pattern, the analyst predicted that ICP could increase from 20% to 30%.
Breaking through resistance
As of the time of writing, ICP was trading at $12.95. A closer look at the 4-hour ICP/USD chart revealed that bulls had successfully defended the $9.14 support level on December 29. This resulted in the formation of a robust green candle, playing a pivotal role in ICP breaking through the $10.15 resistance level, which kept the cryptocurrency in a consolidation phase from December 20 to 28.
Additionally, signals from the Relative Strength Index (RSI) indicated that ICP’s momentum would likely remain bullish in the near term. Despite the RSI reading being overbought territory, it had not led to a price reversal. Furthermore, the absence of red candles in the price action as ICP crossed the $10.15 resistance pointed to a positive divergence.
With the current market conditions remaining favorable, there is a possibility that ICP could witness another 10% increase in the short term. Should this materialize, the price could be on a trajectory towards the $14 mark. This potential was reinforced by the Chaikin Money Flow (CMF) indicator.
When writing, the CMF entered the positive region, indicating bullish sentiment. Moreover, the CMF reading below 0.20 suggested that ICP could continue its upward trend.
Open interest surge and strength
Another important indicator to consider is Open Interest, which measures the total number of outstanding futures contracts. According to Coinglass data, ICP’s Open Interest saw a remarkable surge of 84.58% within the last 24 hours.
This Open Interest surge indicates that traders are actively capitalizing on ICP’s price movements to potentially reap gains.
Increased Open Interest in the context of rising prices indicates strength backing the uptrend. Coupled with the positive signals from the CMF, Open Interest further supports the possibility of ICP reaching the $14 milestone. However, this outcome hinges on market participants refraining from booking profits prematurely.