Market Overview for Internet Computer/Tether (ICPUSDT)

Summary
• ICPUSDT forms a bullish engulfing pattern near key support at $2.68, confirming a possible reversal.
• 50-period MA on the 5-minute chart crosses above the 20-period MA, signaling short-term bullish momentum.
• Volatility expanded through 2.70–2.90 range, with volume surging in late-night hours, confirming breakouts.
• RSI reached overbought territory above 70 after 03:00 ET, suggesting short-term pullback risk.
• Price closed near 50% Fibonacci retracement of the 2.687–2.931 swing, indicating potential consolidation.

Internet Computer/Tether (ICPUSDT) opened at $2.76 on 2025-12-31 12:00 ET, reached a high of $3.016, and a low of $2.674, closing at $3.012 by 2026-01-01 12:00 ET. Total volume over the 24-hour window was 6,478,633.24 ICP, with a notional turnover of $18,328,351.96.

Structure & Key Levels

Price tested a critical support zone near $2.68 and formed a bullish engulfing pattern, followed by a strong rebound. The breakout above $2.85 confirmed a medium-term reversal from a descending triangle pattern, with $2.85 acting as a dynamic support-turned-resistance. Resistance levels now sit at $2.93 (50% Fib), $2.97 (61.8%), and $3.016 (swing high).

Trend and Momentum

The 50-period MA on the 5-minute chart crossed above the 20-period MA in a potential golden cross, supporting the bullish bias. MACD turned positive in the early hours of January 1, with a bullish divergence as RSI bottomed around 2.68 while price did not. RSI peaked above 70 after 03:00 ET, indicating overbought conditions and a potential short-term correction.

Volatility and Bollinger Bands

Volatility expanded significantly between 2.70 and 2.90, with Bollinger Bands widening during the breakout. Price traded near the upper band during strong buying phases and dipped to the lower band during consolidation, suggesting range-bound behavior before the breakout.

Volume and Turnover

Volume surged during the overnight hours (03:00–05:00 ET) and again in the late afternoon (15:00–16:00 ET), coinciding with key price levels. Turnover increased in line with price action, with no major divergences between volume and price, reinforcing the strength of the recent rally.

Fibonacci and Projections

The 2.687–2.931 swing saw a 50% retracement at 2.809, which acted as a support level before the recent breakout. The 61.8% level at $2.97 is now in play as a key resistance, with $3.05 as a potential projection if the trend continues.

Price may consolidate near $3.01 in the short term but appears to have momentum above $2.85. A pullback to test $2.90 could be imminent, offering a potential entry or confirmation level. Investors should watch for a close below $2.90 to signal weakening momentum in the next 24 hours.