ICP price continued its strong rally even as the crypto market plunged on Thursday. It jumped to a high of $7.25, its highest level since March 5 this year. It is up by 350% from its lowest level in October this year, a notable performance as Bitcoin and most altcoins have pulled back.
ICP Price Technical Analysis
The daily chart shows that the Internet Computer token staged a strong rebound after bottoming at $1.61 in October. It has now moved above the important resistance level at $6.28. This was a notable level as it was the upper side of the horizontal channel that occurred between March and October. The lower side of this channel was at $4.42.
The ICP price has now jumped to the 38.2% Fibonacci Retracement level at $6.93. It has also jumped above the 50-day and 200-day Weighted Moving Averages, a sign that bulls are in control.
At the same time, the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards. This is a sign that the coin has a strong momentum.
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Therefore, the token will likely continue rising as bulls target the 50% retracement level at $8.60. A move above that level will point to more gains, potentially to $10. On the other hand, a drop below the support at $5 will invalidate the bullish outlook.
Why the Internet Computer Token is Soaring
The ICP token has jumped as investors buy the dip, expecting that it will bounce back. Its open interest jumped to a high of $185 million, up from the October low of $49 million. The daily volume jumped to over $2.9 billion, up sharply from last month’s low of below $70 million.
The ICP price also jumped after Dfinity Foundation launched Caffein, an AI platform that allows users to build and deploy web applications through natural language conversation. Instead of writing code, one just describes what they want, and the platform will do the work.
This launch means that the network has become an AI platform at a time when the sector is firing on all cylinders.
ICP price also jumped after the developers partnered with Prime Vault, which will bring digital asset custody to the Internet Computer network.
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