ICP Forms Bullish Fractal Setup Suggesting Potential 94% Rally

Internet Computer (ICP) has recently exhibited a technical pattern that traders are closely watching, with some suggesting it could signal an upcoming rally. The cryptocurrency, currently trading in a green zone, appears to be forming a bullish fractal setup reminiscent of a pattern that previously led to a significant price increase [1].

On the daily chart, ICP has been consolidating within a broad falling wedge, a chart pattern often associated with accumulation and eventual breakout phases. This pattern suggests that buyers are gradually accumulating ICP ahead of what could be a strong upward move. In late 2024, the asset reclaimed the 100-day moving average, formed a smaller symmetrical triangle, and faced rejection at the 200-day moving average before entering a corrective phase. After that correction, ICP surged 94%, breaking out of the wedge and touching the upper boundary of the structure [1].

A similar scenario is unfolding today. ICP has once again reclaimed the 100-day MA, formed a smaller symmetrical triangle, and encountered resistance at the 200-day MA—suggesting a possible repeat of the previous bullish pattern. The key for traders is whether ICP can hold and then break out above these critical moving averages, currently around $5.25 and $5.84, respectively. A successful breakout from both the triangle and the 200-day MA could propel the price toward the upper boundary of the wedge, potentially surpassing $8.32 [1].

However, it is important to note that while the fractal setup is encouraging, it remains unconfirmed. A failure to hold or break out above these levels could invalidate the bullish case, leading to further declines. As always, the technical setup is one factor among many in the unpredictable cryptocurrency market.

The broader crypto market is also showing early signs of recovery. Ethereum (ETH), for instance, has rebounded to $3,650 from its recent low of $3,357, indicating that market sentiment may be improving. This environment could provide a favorable backdrop for altcoins like ICP, especially those showing strong technical patterns [1].

It should be emphasized that this analysis is not financial advice. Investors are encouraged to conduct thorough research and consider their risk tolerance before making any investment decisions in the volatile cryptocurrency market.

Source: [1] Internet Computer (ICP) To Rally Higher? This Emerging Bullish Fractal Setup Saying Yes! (https://coinmarketcap.com/community/articles/6891cff56bff85483143312d/)