The Internet Computer (ICP) price experienced a strong rally recently, but the momentum has not been sustained. After a sharp increase last week, the price is now declining and trading near a critical support level of $6, which is closely monitored by market participants.
Technical analysis indicates a clean pullback towards the $6 zone. According to many traders, the price action at this level will determine whether ICP experiences another upward movement or continues its cooling-off phase.
This sentiment is largely influenced by a fresh analysis from Sjuul, who observed that ICP had a significant breakout but is now retracing faster than anticipated. He emphasized the need for buyers to step in promptly and defend the $6 support level.
A failure to hold this support could weaken the current structure, potentially leading to the recent rally fading into a more substantial retracement. The primary question remains whether buyers will re-engage or if the upward momentum has already dissipated.
What the ICP Chart Is Showing
The chart presented by the analyst clearly illustrates the current market situation. Following last week's significant surge, the ICP price has failed to maintain its recent local highs and is steadily declining back towards the support band around $6.
This price zone has served as a reaction point on two previous occasions, indicating its importance to traders. If the price revisits this area and buyers demonstrate strong conviction, the market could potentially form another higher low.
However, the recent price candles appear heavy, and momentum is decelerating. The series of red candles suggests that the current pullback is steeper than previous dips.
While the short-term trend technically remains bullish as the underlying structure has not yet broken, the price is entering a precarious phase. A decisive break below the $6 level would cast doubt on the validity of last week's entire upward move.
The immediate support is situated precisely at the $6 zone, acting as the final line of defense for bullish traders. This is the area from which the previous breakout originated and where buyers have previously shown significant interest.
Should the ICP price fall below this crucial zone, the next area of attention for traders would be the $5.30–$5.50 region. This is where the price consolidated earlier, and it is likely that some buyers are positioned with limit orders in this range. A decline to this level would confirm a complete cooling of bullish momentum.
On the upward trajectory, resistance is observed near the recent local peaks around $7.20. ICP needs to reclaim this level to confirm a continuation of its upward trend. Without a robust bounce from the current support, reaching this resistance level becomes considerably more challenging.
ICP Price Prediction for the Next Few Days
The forthcoming price movement for the Internet Computer is contingent on the outcome at the $6 support level. If buyers successfully defend this zone, ICP could potentially rebound towards the $6.80–$7.20 range, reigniting bullish sentiment and sustaining last week's rally.
Conversely, if ICP breaks below $6, the price might decline into the mid-$5 range, indicating a more significant pullback. While this would not necessarily invalidate the long-term outlook, it would signal that the recent market enthusiasm has waned more rapidly than many anticipated.
Currently, the price action is straightforward. The ICP price is positioned at a critical juncture. Bullish momentum needs to be demonstrated, or the chart patterns will begin to favor a deeper correction. The candles of the next few days are expected to provide clear direction for the current price movement.