Internet Computer rally approaches resistance: Upside targets to watch

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Internet Computer gains 8.05% today

Highlights

Profit-taking has paused the Internet Computer rally as holders sell after recent two-week gains.
Selling by short-term participants is increasing available supply, creating a temporary headwind for further advances.
ICP/USD surged 8.05% to $3.32 and trades with bullish signals, but overbought indicators suggest a short-term range of $3.16 to $3.44.

Profit-taking moderates rally as holders realize gains

Internet Computer (ICP) has experienced a pause in its recent rally as profit-taking emerges following a two-week surge, according to Diariobitcoin. The realization of substantial gains has led some holders to sell into strength, increasing supply from short-term participants. This wave of selling is creating a temporary headwind, moderating bullish momentum in the token as the market digests previous advances.

Overbought conditions signal caution amid strong upside

On the hourly chart, ICP holds above the MA-20 and MA-50, while on the daily timeframe it remains well above the MA-200. Immediate technical support is established by the Ichimoku Kijun at $3.09. MACD and ADX confirm strong upside momentum, with RSI reading 65.18 and both CCI and Stoch RSI indicating overbought conditions. Bull/Bear Power points to ongoing buyer strength, and the Awesome Oscillator stays positive, though multiple indicators highlight that the current rally may be overextended in the near term.

Breakout potential as price approaches upper trading band

Looking ahead, ICP is projected to trade within a band of $3.16 to $3.44 amid typical volatility. The likelihood of continued upward movement remains high, with a breakout above $3.44 reinforcing the prevailing bullish trend. Should the price retreat below $3.16, a short-term correction could develop before renewed attempts to move higher.

Anton Kharitonov, analyst at Traders Union, sees the recent ICP rally losing steam as profit-taking increases supply from short-term participants. Despite strong bullish signals on the charts, he notes several overbought indicators suggest the uptrend may pause soon. The key levels to watch are $3.16 for support and $3.44 for resistance. "Until ICP clears $3.44 with conviction, I remain cautious and expect consolidation in the short term."

Earlier, analysts noted that Internet Computer was under sustained bearish pressure, with downside risks prevailing and key support levels being closely monitored. The latest price action marks a shift to a bullish scenario, and traders should now focus on whether ICP can maintain momentum above $3.16 to reinforce the current uptrend.

Source of Data: ICP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.