Internet Computer (ICP) is probing important resistance on a bullish trend, which would cause an abrupt increase in the crypto market.
Internet Computer (ICP) is also attracting attention in the crypto market with its testing key resistance areas established by a bullish technical trend.
The token is now converting towards the top of a declining broadening wedge- a chart structure that usually indicates the possibility of an upward breakout following a decline.
ICP is trading at approximately $3.06 after giving a bounce recovery at a support of about $2.72, with some initial buying momentum.
The pressure accumulation of this pattern suggests that investors must monitor a breakout that can be used to push prices up considerably.
How Does the Bullish Pattern Form?
Two downward-sloping trend lines separating lower highs and lower lows on the price chart are the two divergent and downward-sloping trend lines of a descending broadening wedge.
The trend is positive, as it often indicates declining selling momentum. The recent price movement of ICP fits this criterion: it has recovered after touching the lower support of the wedge and currently trades close to the upper resistance line at about $3.10.
This value is equivalent to the 50-period moving average, which historically ICP has found difficult to penetrate.
The trend indicates an increasing pressure that can lead to an upside breakout, which could be identified with a break to $3.59, approximately 16 percent higher than the current prices.
Why Does This Matter for ICP Investors?
Once ICP overshoots the upper trend line of the wedge and crosses the 50-period moving average, it would signal a bullish breakout.
This action would start a wave of buying interest, and ICP would soar in value. However, a lack of clearing these levels may result in increased sideways consolidation of the wedge.
Technical analysts observe that the momentum has started to turn bullish, yet it requires decisive action to achieve a breakout that would put ICP among the top altcoins in the next market upswing.
Over the last few months, ICP has shown such bullish breakouts and has continued to gain momentum during wider crypto market upturns.
According to whale accumulation and on-chain indicators, the optimistic perspective is also supported.
The traders are expected to pay attention to the $3.10 to 3.59 area to gather any hints regarding the direction ICP will take in the near future, since surpassing this resistance may encourage the new investors to enter and buy, driven by FOMO (Binance Insights).
As the cryptocurrency market appears to be stronger in early November and the Bitcoin and Ethereum markets experience growth, altcoins such as ICP have a chance of experiencing an upward trend.
The evolving chart pattern of ICP is a continuation of a larger story that this token is capable of achieving a substantial breakout in the near future.
