As a seasoned crypto investor with battle-scarred fingers from navigating through market highs and lows, I can confidently say that the recent surge in Internet Computer (ICP) price has piqued my interest. Having weathered storms like the 2017 bull run and the subsequent bear market, I’ve learned to read the signs of a potential breakout.
The price of Internet Computer is showing signs of a slight surge since the Federal Reserve has kept its interest rate steady at a range of 5.25% to 5.5%, as predicted by the market. In his recent statements, Powell has adopted a soft stance regarding potential future interest rate reductions, reducing the likelihood of a rate reduction in July.
Based on Fed Watch’s perspective, financial analysts anticipate that the Federal Reserve will contemplate a rate reduction in September. Prior to this meeting, cryptocurrency prices began to increase gradually. Bitcoin saw a 1.5% surge to reach $66,485, while Ethereum held steady around its $3,300 support level.
Internet Computer Price Begins Bullish Reversal
On Wednesday, the ICP price experienced a 2% rise, moving from support at $8.8 to $9.21, according to CoinMarketCap data. After a substantial correction from its July 22 high of $10.98, bulls regained control over the trend. The volume had been decreasing for the past ten days. Internet Computer showed signs of a downtrend with three consecutive lower highs and lows. By connecting these price points with two trend lines, we can see a developing falling wedge pattern.
Based on my extensive experience in stock market analysis, I foresee a significant trend reversal pattern that could potentially lead to a 12% breakout at $10.44. This prediction is derived from a method I’ve found effective throughout my career, which involves measuring the distance between the first swing low and swing high, then adding this measurement to the breakout point. This strategy has served me well in the past, but as always, it’s important to remember that markets can be unpredictable and this is just one tool among many that traders should consider when making decisions.
Investors seek a price surge beyond the trendline barrier, anticipating a significant rise in value, typically signaled by an uptick in transaction activity. They usually set buy orders just above the breakout level and their stop losses slightly beneath it.
Alongside the approaching wedge breakout, the Moving Average Convergence Divergence (MACD) signal has just switched to a buy position. This temporary recommendation to purchase ICP came about when the blue MACD line surpassed the red signal line. As the MACD line continues its trend towards neutral, it is expected to generate more interest in the token and potentially initiate a significant surge in the price of Internet Computer.
In simpler terms, after the wedge pattern breaks out, $10 might serve as the initial point to lock in profits. However, it’s wise for traders to keep an eye on the market trends aiming for gains beyond $10 to potentially boost their investment returns.
Following the escape from the downward wedge, traders should be prepared for potential resistance near the 50-day Exponential Moving Average (EMA). Increased selling activity might prevent ICP’s price from climbing above $9.5, thereby triggering sell signals among traders who might choose to sell in the hopes of buying back at a lower price point. If Internet Computer’s price surpasses its 200-day EMA support at $9.19, there could be an intensification of decline towards $8.5 and $7.8 levels.
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2024-07-31 21:32