Why Is Internet Computer (ICP) Price Pumping?

After a strong start of the week for crypto as Bitcoin pumped from $53k lows this weekend to $58k, the market is cooling off today and going through a

Internet Computer (ICP) price is up 11% today, making it the biggest gainer among top altcoins. Several factors may be contributing to this strong performance.

ICP burn rate is also pumping today, which might be helping the positive price action. This is mind blowing, $ICP burn rate almost doubled in less than an hour, lmao. Are you entertained friends? pic.twitter.com/Kr1S9Nvi5p

One key factor is a viral chart posted by analyst Javon Marks on Twitter last night. The chart shows ICP breaking out of a downtrend and making a “Hidden Bullish Divergence,” which could lead to a massive continuation toward a price target of $79.572 — an increase of over 777% from current levels.

Marks is known for his technical analysis and has a large following among crypto enthusiasts. His analysis and price targets often influence the market, especially for altcoins. The positive attention and analysis from Marks may be boosting buying pressure and contributing to ICP's strong performance.

Another factor that may be influencing ICP price is the recent Hidden Bullish Divergence on the price chart. This technical pattern occurs when the price makes higher lows, but a technical indicator like RSI (Relative Strength Index) makes lower lows. This divergence suggests that the bears are losing control despite the price weakness, indicating a potential buildup of underlying strength.

bullish divergence (bull div) - price makes lower lows but momentum indicator (e.g rsi) makes higher lows, signaling bullish strength building up despite price weakness, usually seen in downtrends.

This pattern is typically seen in continuation patterns, where the asset may resume its prior uptrend after some consolidation. The bullish divergence on the ICP chart aligns with the downtrend breakout, suggesting that the price could continue rising after a brief consolidation phase.

ICP price performed well in the first half of 2023 after breaking out of a downtrend on the weekly chart. The price showed a strong reaction to downtrend breakouts last year and in 2023, leading to significant rallies. After a consolidation phase in the second half of 2023, the price is now attempting another breakout.

If ICP price can continue bullish momentum and make another leg up, we could see the price targeting downtrend resistance, Fib levels (0.382-0.618), previous highs, and Ichimoku Cloud Kijun-Tenkan cross Fib levels for potential price targets.

This bullish technical analysis aligns with the recent strength in ICP price, suggesting that the token has the potential to continue rising and reach higher price targets in the coming weeks.