Cryptocurrency: Internet Computer (ICP) Drops Below $16: Cryptocurrency Analysis for April 17, 2024

After breaking through $20, Internet Computer fell more than 40%. Let’s explore the future prospects of ICP prices.

The ICP logo is framed by a magnifying glass against a background of colorful graphics and a bull and polar bear.

Internet Computing (ICP) Current Situation

After peaking at $20.96, Internet computer prices began a consolidation phase below that level. In fact, its price fluctuates between $19 and $16. It is worth noting that the latter price corresponds to the previous peak before the $20 mark. Furthermore, it sits at the 38.2% Fibonacci retracement level of the last bullish impulse. At the time of writing these words, Internet Computer is trading at about $12. Therefore, we can understand that buyers are not maintaining the momentum. Nonetheless, it is worth noting that buying interest in ICP has revived just above old support levels around $10.

While the ICP structure remains bullish, recent volatility has kept the price below the 50-day moving average. The oscillators, as well as the ICP itself, unsurprisingly illustrate market dynamics that have corrected downwards. Of course, these factors cast doubt on the continuation of the cryptocurrency trend.

ICP/USD daily chart
ICP/USD daily chart

The current technical analysis is conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market.Now he is a coach family deal, a community of thousands of individual traders active since 2017. You will find life around financial markets, educational content and mutual assistance in a professional and warm atmosphere.

Focus on derivatives (ICPUSDT)

Open interest in the ICP/USDT contract increases as its price falls. In fact, open interest in the ICP/USDT perpetual contract fell by nearly $60 million. The most pronounced and volatile declines were accompanied by massive liquidation of buyers. Combined with lower funding rates, this suggests buyers are turning to support short interest during periods of volatility.

Open positions; liquidation and funding rate ICP/USDT
Open positions; liquidation and funding rate ICP/USDT

The three-month ICP liquidation heat map shows that ICP exceeded the significant liquidation area located around $16. Although buyer reaction at this level could be observed, the subsequent selling pressure was too much. Recently, ICP bounced around the subtle liquidation zone around $10.5. So far, buyer interest appears to be showing. Currently, the most obvious liquidation zone is above current prices, around $14. On a move higher, the $16 area may come into focus again. Below current prices, the $10 area stands out. If the price approaches these levels, it could trigger a flood of orders, increasing the likelihood of a period of severe volatility in Internet computers. These areas represent important points of interest for investors.

ICP liquidation heat map (3 months)
ICP liquidation heat map (3 months)

Possible Scenarios for Internet Computer (ICP) Prices

  • If Internet computer prices remain above $10, we expect the bullish trend to continue to $16. If this level is breached, the next bullish target could be the $20 threshold. At this time, the increase will exceed 70%.
  • If Internet computer prices fail to stay above $10, consider falling back to around $8. If the bearish trend continues, the next support level to consider will be around $6. At this level, the decline is approximately -49%.

in conclusion

Internet Computers is facing selling pressure, erasing its last rally and returning to previous support levels. This is the reason for the overall decline in the cryptocurrency market. While its underlying trend remains bullish, recent volatility has created uncertainty about the continuation of this trend. Therefore, it is crucial to carefully observe price reactions at various key levels to confirm or refute current assumptions. It is also important to remain alert to the potential for “fake trades” and market “squeezes” in each situation. Finally, keep in mind that these analyzes are based solely on technical criteria, and cryptocurrency prices can also change rapidly due to other, more fundamental factors.

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