Internet Computer (ICP) price has recently attracted attention, reflecting a steady, moderate positive user interest as indicated by the OI Weighted Funding Rate. Despite a consistent decline in the weekly RSI level over three weeks, this suggests a significant buying ecosystem but also points to a potential decline in interest.
Investor Interest in ICP Shows Decline
ICP price increased from $10.79 on March 20 to $20.59 on March 27, marking a 90.82% growth. It is interesting to see that the weekly RSI level during the same period was around 73 and 74. The Relative Strength Index (RSI) measures the speed and change of price movements, ranging between 0 and 100.
For Internet Computer (ICP), the weekly RSI level hovered around 86 in the first half of March, indicating strong buyer interest and a possible overbought condition. It later receded to 73 and currently reflects a steady decline with a level of 71.
This downward trend in RSI suggests waning interest in ICP and could potentially lead to a consolidation phase. A consolidation phase, characterized by reduced price volatility and narrower trading ranges, could indicate that the market is balancing supply and demand after the last volatile movement and setting the stage for the next price movement direction.
ICP Chart Analysis
Examining the four-hour ICP chart, a significant formation emerges with the EMA lines completing a golden cross on March 23. A golden cross occurs when a shorter-term moving average crosses above a longer-term moving average. This could signal potential upward momentum ahead. Following this crossover, the ICP price witnessed a sharp rise from $13.2 to $19.8 by March 27.
EMA lines are used to smooth out price data to more clearly define market trends, giving more weight to recent prices and making them more responsive to new information. While a golden cross indicates an uptrend, the recent narrowing distance between EMA lines could signal price consolidation.
This results in the price of an asset trading within a limited range as the market decides on its next move, often maturing with investors taking profits and new investors entering the market at current price levels. Therefore, it suggests that the ICP price could stabilize between $16 and $18 in the short term.
Looking forward, if buying pressure is strong enough and the uptrend continues, ICP could challenge the resistance at $20.99. Conversely, a shift in sentiment leading to a bearish trend in the market could see ICP drop to support levels of $11.5 or even down to $10.5.
