Internet Computer (ICP) Price Has Shaped a Falling Wedge Pattern

Internet Computer (ICP) price has been in a bearish trend and falling through two descending trendlines. Every time, the ICP price has formed new lows which showcases the sellers’ domination.

The price of Internet Computer (ICP) has been on a bearish streak, breaking through two descending trendlines. Each time, the ICP price has formed new lows, highlighting the sellers' dominance. In the previous support zone of $8.35, the price has formed a bullish candlestick pattern.

A recent surge in the ICP blockchain's daily active addresses has brought it to an ATH. Starting in early October, ICP user engagement began to rise and has continued to do so, indicating a spike in network adoption and usage.

Precise metrics show 1.5 million active addresses, a significant increase compared to the 900,000 at the beginning of October 2024.

As more addresses are linked to higher investor interest and market confidence, this could raise the blockchain's valuation. If this encouraging trend in user engagement continues, ICP may see steady growth and solidify its place in the market. Conversely, a decline in active addresses might have a detrimental effect on the blockchain's functionality.

Whale Activity Analysis

Further analysis showed that the supply peak for large whales (+100k ICP) was 844,000,000 ICP, while the supply peak for smaller whales (10k-100k ICP) was 406,300,000 ICP.

Smaller whales had dropped to 399,000,000 ICP by January 2025, while large whales had slightly decreased to 824,725,487 ICP. This suggested confidence in ICP's long-term value as it showed that large whales kept their holdings more stable.

Smaller whales may react more quickly to changes in the market, due to their greater volatility. This discrepancy may indicate that while smaller whales may be more speculative and influence short-term price swings, larger whales may be positioning for future gains and stabilizing ICP’s market.

Moreover, ICP experienced a spike in daily transfers, hitting a record high of 96,000. This growth showed that the blockchain's profitability increased by 15% over the previous year, while the number of users increased by 20%.

ICP Price Has Shaped a Falling Wedge Pattern

At press time, Internet Computer crypto was trading at $8.89, up 3.6% in the past 24 hours. The market capitalization was $4.26 Billion and the 24-hour trading volume was $108.23 Million

According to the technical chart, the price has formed a falling wedge pattern on a daily time frame. Amid recent fall, the price has formed a morning star pattern in the support territory of $8.5.

If the price departs from this territory, it would tempt buyers. Once the ICP coin price triggers a breakout from the falling wedge pattern, buyers may lead the further trend. If the price enters the $12 mark, buyers may eye for the last swing high of $15.

Conversely, if the price declines below the support zone of $8.50, sellers might be confident. Once the ICP crypto price loses the major support zone of $7, it might be difficult for buyers to bounce back.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.