Internet Computer (ICP) is still leaning towards a downtrend, and buyers should only be cautious until the 3-day candle closes above $3.78 to confirm a structural reversal.
Comments on the 'anti-interference' infrastructure thanks to no-code AI tools have brought ICP back into focus, but recent price movements show that profit-taking pressure remains dominant, especially when the overall crypto market sentiment is still weak.
MAIN CONTENT
Statements from Dfinity suggest that no-code AI could support a secure, stable application infrastructure that is less susceptible to interference.
ICP has increased 22.6% from its most recent low but quickly corrected, with the larger structure remaining bearish.
The level of $3.78 is crucial; only when the 3-day candle closes above this level will it increase the reliability of the reversal scenario.
Dfinity emphasizes that no-code AI can enhance the resilience of Web3 infrastructure.
The Vice Chairman of Dfinity Foundation believes that no-code AI tools help create and develop applications that can provide better secure, stable infrastructure and resistance to interference.
Lomesh Dutta, Vice Chairman of Dfinity Foundation, commented that the trend of 'no-code' AI tools for creating and evolving applications could support building secure, stable, and less manipulable infrastructure. According to this argument, the dependence on centralized bottlenecks may decrease, thereby limiting the risk of service interruptions for Web3 applications.
The context mentioned is after the AWS incident in October, many crypto companies and Web3 applications were affected by disruptions. Although the content above is visionary, it has contributed to bringing Internet Computer (ICP) back into public discussion through statements, while the market is sensitive to the 'sustainable infrastructure' topic.
Dfinity is a nonprofit organization focused on developing the Internet Computer blockchain. Information like this can strengthen the foundational narrative of ICP, but the price impact still largely depends on technical structure and crypto market sentiment, especially when Bitcoin (BTC) still dominates the overall trend.
Profit-taking has wiped out ICP's gains in November.
On the 3-day chart, ICP has retraced the entire increase of November from $2.79 to $9.85, indicating overwhelming profit-taking pressure.
Analysis of the 3-day chart shows a bearish internal structure and the price 'retracement' fully retracing the November increase from $2.79 to $9.85. Previously, expectations were that support zones at $5 and $4.30 would be defended, but the actual price action did not hold these levels.
Technical indicators reflect a lack of strong trend but lean towards bearish: DMI sends mixed signals, reflecting the speed of the 'impulse' move and subsequent retracement phase; OBV is gradually declining; MACD shows bearish momentum. In this context, buying pressure needs more confirmation before expecting a sustainable reversal.
An important technical point noted is that to reverse the structure towards bullish, ICP needs to return and break above $3.78. This level serves as a boundary that distinguishes between short-term technical recovery and significant structural change for swings.
The 4-hour chart shows an imbalance zone around $3.20.
The 4-hour chart recorded an 'imbalance' zone around $3.20 after a breakout of the bullish structure, but the larger timeframe remains bearish, so buy signals require risk management discipline.
On the 4-hour chart, the imbalance zone around $3.20 appeared after a 'break' of the bullish structure at this timeframe. At the time described, ICP is slightly correcting and has dropped 8.46% in less than 12 hours, a sign that short-term volatility remains high.
Short-term indicators are assessed to support the buyers, but risks arise from the higher timeframe structure still leaning bearish. Therefore, upward orders, if any, should be viewed as tactical trades, not confirmations of longer-term trend reversals, until the price breaks the key level of $3.78.
The bearish sentiment in the Bitcoin market may put altcoins under selling pressure.
When overall market sentiment, particularly Bitcoin, is still bearish, altcoins that rally like ICP are likely to encounter profit-taking selling pressure.
An assessment of 'market-wide sentiment' shows that Bitcoin (BTC) remains predominantly bearish. In such an environment, altcoins with significant gains often face strong selling pressure from investors taking profits, especially when the upward momentum has not been consolidated by a change in the larger structure.
This may limit ICP's rallies unless a strong enough catalyst appears or overall sentiment reverses. Therefore, monitoring BTC and the 'risk-on/risk-off' dynamics of the crypto market is a necessary step before raising expectations for ICP.
Trading strategy: prioritize defense until ICP closes a 3-day candle above $3.78.
Swing traders may maintain a bearish bias until ICP closes a 3-day candle above $3.78; short-term traders may consider buying with a stop-loss below $2.90.
For large timeframe traders, the confirmation condition emphasized is a 3-day candle closing above $3.78. The 1-day chart also indicates this as an important local resistance zone, appropriate to consider as a 'key swing point' before changing direction.
Meanwhile, lower timeframe traders may consider buying at the current zone but need to manage risk discipline with a stop-loss below the local support at $2.90. This approach reflects the difference between trading based on short-term retracements and betting on a trend reversal, which has not yet been confirmed.
Frequently Asked Questions
What price level is most important to confirm ICP's upward reversal?
The key level is $3.78. Only when ICP closes a 3-day candle above $3.78 will the structure have a basis to 'flip' to bullish according to the analysis.
Why might ICP face selling pressure despite having risen sharply recently?
As the crypto market sentiment, especially with Bitcoin, is described as still bearish, altcoins that rise sharply often face profit-taking pressure. This makes rallies vulnerable to selling if trend confirmation is absent.
Where can short-term traders set their stop-loss when buying ICP?
One suggestion is to place a stop-loss below the local support zone at $2.90. This is a way to limit risk when trading in a higher timeframe context that is still bearish.
Source: https://tintucbitcoin.com/icp-tang-22-giam-8-sap-toi/
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