The cryptocurrency Internet Computer (ICP) experienced a significant recovery rally on January 23, with its price surging by 30% from $9.52, signaling a potential V-shaped recovery. Despite this positive trend, ICP faced resistance within a supply zone ranging from $12.01 to $14.43, which could impede its upward momentum.
Supply Zone Dynamics and ICP’s Price Trajectory
The Relative Strength Index (RSI) remains above 50, suggesting a growing momentum for ICP. If the buying pressure continues, ICP could challenge the midpoint of the supply zone at $13.22. A decisive break above this level may confirm a sustained uptrend for the altcoin.
For ICP to maintain its upward trajectory, it must overcome the supply zone’s resistance. If successful, the next resistance at $15.33 could become a new support level, further cementing the coin’s recovery.
In an optimistic scenario, ICP could reach $16.30, a price last seen on January 3, marking over a 30% increase from current levels. This would represent a significant achievement in its recovery.
On the flip side, if ICP faces rejection at the supply zone, it might trigger a pullback, potentially retesting the $10 mark. A more severe decline could see the price fall to the $8.79 support level, a 30% drop from its current standing.
The current situation places ICP at a crossroads, with the supply zone playing a pivotal role in determining its next move. Investors are advised to monitor the RSI for momentum indicators and prepare for either a breakout or a pullback, as these will be critical in shaping ICP’s market strategy.