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Internet Computer (ICP) is currently at a pivotal moment, testing a key resistance level at $5.824 after weeks of sideways movement. This level has been a significant barrier for the token, and a breakout above it could signal a bullish continuation. The price is currently hovering around $5.98, up approximately 4% on the day, indicating growing bullish sentiment among traders.
If ICP manages to close above $5.824 on a daily basis, it could trigger a significant upward move. The next resistance levels to watch would be $7.26 and $9.50. These levels represent potential targets for bulls, but traders are advised to wait for confirmation before entering new long positions. A rejection at the current resistance could lead to a bullish retest between $5.75 and $5.55, providing another entry opportunity for buyers.
The current price action is characteristic of a token that has been consolidating for an extended period. Traders often wait for a breakout, followed by a brief pullback, before entering long positions. This strategy allows them to capitalize on the momentum while minimizing risk. For now, patience is key as the market awaits confirmation of the breakout.
If the breakout holds, the next hurdle for ICP would be at $7.26, which could bring minor selling pressure. However, the real extension zone sits higher at $9.50 and above. This would represent a major move from current levels and would likely require strong volume to sustain. Market watchers agree that the daily close is the trigger for this potential move. Until ICP confirms above $5.824, the structure remains neutral, and short-term bulls are watching closely for a signal to step in.
In the meantime, traders should stay alert and manage their entries carefully. The crypto market is showing pockets of strength, and ICP might soon join the list if confirmation hits. The Internet Computer community is hopeful that this breakout will materialize, as it would validate the project's growing adoption and technological advancements. However, it is important to note that without confirmation, false breakouts can trap eager buyers, so caution is advised.
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