ICP price is showing signs of weakness after hitting a strong resistance level at $7.2. This resistance has been limiting price growth since December. Technical analysis points to a potential +20% drop ahead for the token.
Daily trading data reveals ICP price is stuck in a downward channel, consistently making lower highs and lower lows. This bearish pattern strengthened after buyers recently failed to push through the $7.20 resistance mark. This area is also the top of the channel.
If this downward trend continues, ICP could tumble over 20% to reach $5 range. This pattern isn’t unique to ICP.
Conditions for ICP Price Recovery
There’s still a chance for recovery though. A strong break above the current resistance level at the top of the descending channel could reverse the trend. This will be regarded a strong signal if backed by heavy trading volume. A broader crypto market rally could also help lift Internet Computer price up.
For now, the path down looks more likely than up. Traders should keep an eye out for any sudden uptick in buying pressure that might signal a trend change.
