ICP has been stagnant since mid-June with price action trading around $2.17. The 9-day and 26-day moving averages are flat, reinforcing muted price action with little daily change.
Interestingly, the price action in ICP indicates a potential breakout that could determine the direction of the altcoin.
ICP Crypto is close to breaking out of the triangle pattern
Looking at the ICP price, the altcoin was trading at the top of a consolidating triangle pattern. The pattern features horizontal support at $2.12 and slanting resistance ranging from $2.50 to $2.20. It lasted for about two months.
Price contraction to the top indicates that volatility is low. Typically, low volatility precedes high volatility, indicating a possible pattern breakout.
Currently, ICP trading is in the process of consolidation. However, a breakout and stay above the sloping resistance level will reveal a rally towards $2.50 or higher.
This was supported by Bull Bear Power (BBP) turning to the upside. In addition, transactions have increased for more than 10,000 ICPs on the Binance spot market since July 15.
Collectively, over 503 million ICP tokens were forcefully collected in these two weeks. But from a broader perspective, ICP purchasing activity began in the second half of June.
On the other hand, if the ICP breaks the support level at $2.12, further price decline is expected. That is, the next major demand level is $2, while the extreme downside target is at the $1-$1.16 area, which was established on October 10.
Why does network activity show variation?
While the ICP was bullish on technical outlook, its serial activity was bearish. For example, total transactions fell from 9,612 per day to about 3,680, the lowest level this month. These numbers represent an approximately 62% reduction in network usage.
However, ICP topped Blockchain by number of monthly transactions with 9.40 billion, followed by Solana (SOL) with 8.60 billion.
Likewise, trading volume has been declining further, leading to this month’s decline. It decreased from 2.869 million ICP tokens to 362.7 thousand ICP tokens, which reinforced the low network activity.
Final summary
- Internet Computer has been trading at the top of a consolidation pattern as the accumulation trend picks up pace.
- ICP activity across the chain was divergent from the bullish technical outlook, reinforcing that a potential breakout was on the horizon.
