Internet Computer surges 21% – Can ICP finally break its 3-month ceiling?

Bitcoin [BTC] tested the $82k mark just a few hours before the time of writing. The crypto market leader has held a steady bullish trend over the past week, gaining nearly 10%. This helped bolster short-term sentiment in the altcoin market.

The AI sector has been one of the stronger-performing ones. AMBCrypto reported that the AI sector was pushing higher as the surrounding narrative strengthened and drew increased capital.

Internet Computer [$ICP] has benefited from this boost, rallying 21% since the 4th of May.

The Coinalyze data for $ICP was also bullish in the short term. As the price approached $2.60 and faced rejection, the funding rates remained negative. This indicated that traders and speculators were willing to bet on short positions.

They have faced losses since then as $ICP pushed higher, reaching a local high of $2.89. At press time, its momentum seemed like it could push prices higher, but the price structure can give traders and investors an important clue.

How much higher will $ICP go?

From the range formation on the daily timeframe, not much higher. Since February, $ICP has been unable to convincingly shatter the $2.8 resistance zone.

It can be argued that, since the final week of February, the altcoin has set higher lows at $2.15 and $2.32. Psychologically, this implies buyers are willing to buy at a premium compared to the $2 floor established in February, signaling a bullish attitude.

However, the swing structure on this timeframe remained bearish. Traders should beware of the $2.8-$3.0 supply zone as a bearish bastion.

The cluster of short liquidations just under $3, built up over the past 3 months, was likely to beckon $ICP prices higher. At the same time, as the D1 OBV showed, heavy, sustained demand has not been seen during the move higher from $2.

Therefore, traders should anticipate a liquidity sweep of the $2.8-$2.9 area and a bearish reaction. Their bias can shift bullishly once the $2.9-$3.0 area is flipped from resistance to support.

Final Summary

• The Bitcoin momentum and narrative strength around sectors such as AI have helped $ICP post substantial gains recently.
• Though the altcoin has made higher lows since late February, it needs sustained demand to break out past the $3 psychological resistance.