Amidst a fluctuating altcoin market, Internet Computer (ICP) has recently emerged as a standout performer, flashing strong signals of a potential significant rally. Its recent price action, coupled with robust on-chain indicators, paints a bullish picture, suggesting ICP could be poised for further substantial gains in the near future.
Signs of Resurgent Demand
Internet Computer (ICP) demonstrated remarkable strength, surging an impressive 17% on November 18th and posting strong double-digit gains over 24 hours while many other popular altcoins like Binance Coin (BNB) and Solana (SOL) shed value. This relative strength is underscored by a high daily trading volume of $858 million, indicating heavy market demand. Furthermore, a 20% increase in Open Interest over 24 hours and a rising spot CVD (Cumulative Volume Delta) further confirm growing buyer interest and market liquidity.
The Short Squeeze Catalyst and Key Price Levels
A crucial factor contributing to ICP's upward momentum appears to be a developing short squeeze. Despite climbing prices, the Funding Rate remained negative, signaling that the market was overly pessimistic and had accumulated a significant number of short positions, particularly during the retest of the $5.5 level. A continued price ascent will force these short sellers to cover their positions, thereby fueling further price appreciation. Notably, the $5.5 zone, which previously acted as resistance, has been swiftly flipped into a robust demand zone on the 4-hour chart, making a drop below $5 or $5.5 in the coming days highly improbable. This quick flip defied some market expectations that anticipated a retest of the $4.3 Fibonacci retracement level before a reversal.
A Clear Path Towards Higher Targets
The technical outlook for ICP remains overwhelmingly bullish, supported by a clear bullish swing structure and steady demand reflected in the On-Balance Volume (OBV). With the $5.1-$5.5 range solidified as a strong demand zone, the path appears clear for ICP to trend higher. Analysts project a rally towards the local high at $9.84 as a feasible target within the next one to two weeks, building on the current bullish momentum and sustained market interest.
