On Saturday, January 31, Internet Computer (ICP) traded at a price of $2.85 after falling 6.34% in a day. The market capitalization of ICP stood at $1.56 billion, and the trading volume decreased by 17.33%. ICP also lost 18.69% over the past week, according to CoinMarketCap data.
Source: CoinMarketCap
ICP continued to move within a descending channel in the weekly chart. Analyst Jonathan Carter pointed out that the support zone remains intact and that there are early indications of a reversal following the recent sell-off.
The strength of this support zone continues to dictate market impact. Carter also pointed out that the trading volume has started to pick up, with many days of low trading activity.
The targets were confirmed at a price of $4.00, $5.20, $7.60, $12.00, and $17.50, while the stop-loss is set at a price of $2.15.
Source: X
ICP Holds Weekly Support as Trading Range Remains Intact
According to another analyst, AltCryptoTalk, ICP is currently sitting on weekly support at a price of $2.75. The analyst described this price as the lower end of the current trading range. The analyst also pointed out that the long positions are valid as long as this trading range holds.
The first resistance level is the high-range target, which is around the price of $5.00. The structure remains the same, and there has been no change as long as the lower support remains intact. The next move depends on the strength of the $2.75 price zone.
Source: X
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Open Interest Weakens as Liquidations Increase
According to CoinGlass data, there was a 15.82% drop in trading volume to $180.00 million. The Open Interest also decreased by 8.58% to $94.66 million. The OI Weighted Funding Rate was at 0.0019%.
Source: CoinGlass
Total liquidations were recorded at $646.79K over the last 24 hours. The liquidations for long positions were at $642.89K. The liquidations for short positions were at $3.90K.
Source: CoinGlass
RSI and EMA Signals Point to Continued Weakness
The Relative Strength Index (RSI) shows a value of 34.02 with a signal line at 46.52. The RSI indicator is below the equilibrium line, as selling pressure is still dominant.
The current value of the Exponential Moving Average (EMA) on a 20-day frame is at $3.352. The EMA 50 is slightly higher at $3.467. The ICP is trading below the short-term EMAs. This reflects a loss of momentum for ICP.
The value of the EMA on a 100-day frame is at $3.726. The EMA 200 is even higher at $4.264. The price is trading below both EMAs. This signal reflects a market downtrend.
Source: TradingView
Analysts continued to emphasize the need to hold the weekly support band. They explained that price stability would depend on holding the price band between $2.75 and $2.85. The upcoming sessions would determine whether the price would change its momentum or continue to fall.
Also Read: Internet Computer (ICP) Slides 1.52%, Technical Setup Eyes $5.78 Resistance
