Internet (ICP) Price Soars 12% on Bullish Sentiment as $12 Support Holds

Internet Computer (ICP) price has surged in the last 24 hours after support at the intraday low of $11.78 held firm. The cryptocurrency experienced an 11% increase, marking a notable recovery from recent dips. This surge comes amidst a backdrop of volatility in the crypto market, particularly for Internet Computer, which has seen significant price swings in recent days. The bullish momentum, as a result, soared the ICP price to an intra-day high of $13.39 before facing stiff resistance. 

At press time, the ICP price was exchanging hands at $13.20, a 10.20% surge from the intra-day low.

Concurrently, due to increased investor interest, ICP's market capitalization and 24-hour trading volume soared by 10.31% and 9.83% to $6,115,083,331 and $181,826,029, respectively.

ICP/USD 24-hour price chart (source: CoinMarketCap)

Support Holds Strong Amidst Volatility

Despite the broader market fluctuations, support for Internet Computer remained robust at the $12.00 level. This support zone has proven critical in preventing further downside movement for ICP, acting as a launchpad for its recent upward momentum. The resilience displayed by this support level underscores the confidence investors have in Internet Computer's potential, even amidst market uncertainty.

Analyzing the technical indicators, several signals suggest a potential upside for Internet Computer. The recent surge in price is supported by indicators such as the Moving Average Convergence Divergence (MACD), which indicates a convergence between the MACD line and the signal line. This convergence typically signifies increasing bullish momentum, potentially fueling further price appreciation for ICP. If the MACD line crosses into the positive region, the bullish rally may be poised for a longer rally. Moreover, the histogram trend in the positive region indicates an increasing buying pressure, setting up the pace for a continued rally.

ICP/USD 4-hour price chart (source: TradingView)

Furthermore, the Money Flow Index (MFI) hovering around 63.46 suggests strong buying pressure, albeit nearing overbought territory. While this could indicate a potential pullback in the short term, it also highlights the bullish sentiment surrounding Internet Computer, with investors actively accumulating positions.

Chart Analysis: Key Levels to Watch

Examining the chart for Internet Computer against the US dollar (ICP/USD), several key levels emerge as significant points of interest. The recent surge has brought ICP above the upper Bollinger Band (BB) around $13.14. Breaking above this resistance has paved the way for further gains, with $13.50 representing the immediate hurdle to overcome if the bullish momentum prevails.

On the downside, the $12.00 support level remains crucial for maintaining the current bullish momentum. A breach below this level could signal a shift in sentiment, potentially leading to a deeper retracement for Internet Computer toward the lower band level of $11.40. 

Investor Sentiment and Market Dynamics

Investor sentiment towards Internet Computer appears cautiously optimistic, with recent price movements reflecting a balance between bullish and bearish forces. While the surge in price indicates renewed buying interest, the broader market dynamics, including fluctuations in open interest and liquidation levels, suggest a degree of uncertainty among market participants.

The reduction in open interest for ICP/USDT contracts, coupled with significant buyer liquidations during volatile periods, reflects a cautious approach among traders. However, the resurgence of buying interest above the $10 support level indicates underlying confidence in Internet Computer's long-term prospects.