The cryptocurrency Internet Computer (ICP) recently experienced a notable short-term price bounce, sparking interest among traders. However, a deeper look into its market behavior reveals that this rally may not signify a reversal of its persistent long-term bearish trend.
ICP's Brief Price Surge
In recent hours, ICP saw a significant 6.5% surge in its 24-hour trading, with prices climbing from an initial dip around $3.33 to as high as $3.67. This upward movement was primarily fueled by a cluster of short liquidations accumulating at the $3.55 mark, which acted as a magnet attracting prices higher. High trading volumes also accompanied this demand-driven bounce, contributing to the brief upward pressure.
The Persistent Bearish Landscape
Despite this recent uptick, the broader market outlook for ICP remains firmly bearish. The token has been locked in a prominent downtrend since March, a pattern that even the wider rallies of Bitcoin and other large-cap altcoins in April and June failed to disrupt. Key technical indicators, such as the CMF and Awesome Oscillator, continue to signal prevailing bearish momentum, even amidst periods of high trading volume. Furthermore, the $3.7-$3.75 region, a supply zone from mid-October, is likely to act as strong resistance, making a sustainable recovery challenging.
Navigating Future Prospects
For ICP to truly break free from its established downtrend and usher in a recovery, more substantial movement is required. Analysts suggest that a decisive breakout past the $3.8 mark, followed by a successful retest of this level as support, would be crucial to signal a genuine buying opportunity. Until then, caution is advised for investors, as the current short-term bounce is unlikely to independently drive a long-term uptrend, reinforcing the need for prudence in the face of ongoing market pressures.
