Internet Computer Surges to $5.5: What This Means for ICP's Future

The Internet Computer (ICP) has seen a notable increase in value, outperforming many altcoins within the last 24 hours. This surge has raised the possibility of further gains, potentially pushing ICP towards the $9.8 mark, while the likelihood of revisiting the $5 price level this week appears low.

Key Takeaways

In the past 24 hours, Internet Computer has outperformed many altcoins, recording impressive double-digit gains, suggesting a rally towards $9.8 is imminent.
The price range of $5.1 to $5.5, considered a local demand zone, has been retested, and a drop below this is seen as unlikely.
On November 18, ICP surged by 17% and may continue its upward trend.
The daily trading volume hit $858 million, reflecting robust market interest.

ICP gains Source: Internet Computer Today on X

This significant gain highlights ICP's short-term strength compared to other major altcoins like Binance Coin (BNB) and Solana (SOL), which have seen declines recently.

ICP Coinalyze Source: Coinalyze

Additionally, ICP experienced a 20% rise in open interest within 24 hours, indicating an increase in demand. However, data from Coinalyze revealed that the funding rate was negative, despite rising prices. This scenario points to a potential short squeeze, triggered by a market that had been overly pessimistic when testing the $5.5 resistance level.

If prices continue to rise, it may force short positions to close, driving prices even higher. The significance of the $5.5 level raises questions about why the market leaned toward bearish positions.

Internet Computer bulls reclaim $5.5 - Why ICP may not revisit $5 this week

Analyzing ICP's Price Movement

ICP 1-day Chart Source: ICP/USDT on TradingView

Following a rally earlier in November, Fibonacci retracement levels indicated that $4.3 was prepared for a bullish reversal, aligning with former resistance in October. Some traders may have anticipated a retest of $4.3 during recent price fluctuations, possibly influenced by overall bearish market sentiment.

Despite this, the bullish price structure and continued demand shown by the On-Balance Volume (OBV) suggest that ICP is set to trend upwards again. A local high of $9.84 seems achievable in the following weeks.

ICP 4-hour Chart Source: ICP/USDT on TradingView

The 4-hour chart also displays a bullish price structure and momentum. The zone around $5.5 that was previously resistance has transitioned into a demand zone, making it less likely that ICP will dip below $5 or lower this week.

Disclaimer: The information provided should not be considered as financial, investment, trading, or other types of advice and solely reflects the author's opinion.