Internet Computer price analysis: A 50% rally may be on the cards?
Internet Computer could rally in the near term
Internet Computer (ICP) has been attempting to form a bottom after an extended decline that saw its price plummet from an all-time high of $750.73, according to CoinMarketCap data. Buyers are trying to stall ICP’s decline near $6 as of 12 July 2022.
The Dfinity Foundation, a not-for-profit Swiss organisation developing technology for the Internet Computer blockchain, was in the news for its lawsuits.
The Switzerland-based foundation filed a lawsuit in a California federal court on 29 April against Meta Platforms over its logo. Dfinity claims that Meta’s logo is too similar to its own and that could be detrimental for the company “if users were to associate Dfinity with Meta’s sordid online privacy history”.
In other news, Dfinity announced that it had filed a lawsuit against The New York Times, Arkham Intelligence, its founders and Times reporters Andrew Ross Sorkin and Ephrat Livni about a story published in June 2021.
However, the Times spokeswoman Danielle Rhoades Ha said: “We’re confident in the accuracy of our reporting and plan to defend against this suit vigorously,” Politico reported.
Could Internet Computer form a higher low and signal the start of a new uptrend? Could Internet Computer go up? Read the ICP price analysis to find out.
Internet Computer price technical analysis: Weekly chart
ICP’s price has been in a strong downtrend for the past several months. The recoveries have been shallow and have usually lasted about three weeks, barring the sharp rally seen between July and September of 2021.
The relative strength index (RSI) remains in the oversold territory indicating that sellers are in command. However, the bulls are attempting to stall the decline near the psychological level of $5.
Attempts by the bears to pull the price below $5 have met with strong buying from the bulls. The buyers will now attempt to push the price above $7.50. If they manage to do that, the relief rally could reach $10.
Internet Computer price technical analysis: Daily chart
ICP’s price broke out of the $5 to $6.50 range on 8 July, indicating that the bulls had overpowered the bears. The RSI rose into the positive territory, indicating a slight advantage to buyers.
However, the bulls could not sustain the price above $6.50. The bears pulled the price back below the breakout level on 10 July.
If the price fails to rise back above $6.50 within the next few days, the bears will try to pull the ICP/USD pair back toward $5. If that happens, it will suggest that the sentiment remains negative and traders are selling on rallies.
Conversely, if the price rises back above $6.50, it will suggest that traders are buying on dips. That could increase the possibility of a break above $7.50. If that happens, the pair could rally to $8 and then attempt to extend the upward move to $10. The bears are likely to pose a strong challenge at this level.
Internet Computer: Buy or sell this week?
Internet Computer is attempting to form a bottom near $5. If buyers push the price back above $6.50 quickly, the likelihood of a rally to $7.50 and then to $10 increases. On the other hand, if the price breaks below $6, Internet Computer's price analysis suggests that a decline to $5 is possible.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.