Internet Computer (ICP) has shown signs of recovery after a sharp correction earlier this week. The token recently rebounded from a critical demand zone, sparking renewed interest among traders. Despite the bounce, analysts warn that major resistance levels could determine the next move for ICP.
At the time of analysis, ICP is trading near $4.82, marking an intraday gain of nearly 3%. The price action indicates a strong demand zone between $4.60 and $4.80, where buyers have stepped in to halt the decline. This area has been acting as a short-term support level since the latest market pullback.
However, the token faces significant resistance near $5.20 – $5.40, a region that previously triggered heavy selling pressure. A decisive breakout above this range could pave the way for a potential rally toward $5.70, but failure to breach it may result in renewed selling.
Market analysts believe that ICP remains in a bearish structure despite the rebound. According to BITX technical strategist:
“The price is attempting to stabilize, but a sustained move above $5.20 is essential for any meaningful bullish momentum. If the token closes below $4.80 again, the risk of further downside toward $4.20 remains high.”
The short-term outlook hinges on how ICP reacts to the $5.20 resistance zone. A successful breakout could attract momentum buyers, while rejection at this level might extend the consolidation phase. Traders are advised to monitor volume and breakout confirmation before entering positions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.