Internet Computer (ICP) experienced a strong rally earlier this month, but the bears have recently regained control. Over the past week, the asset’s price has collapsed by approximately 32%, raising the question of whether this is a perfect buying opportunity or the beginning of a more significant crash.
What’s Next?
ICP stole the show at the start of the month, with its valuation exploding to almost $9.50 on November 8, the highest mark witnessed since January this year. Its market capitalization briefly exceeded $5 billion, and it seemed like a further pump was on the way. However, the major correction of the broader cryptocurrency market poured cold water on those expectations. ICP is among the biggest losers in the past week, tumbling by more than 30% and currently trading at less than $5.
Despite the retreat, many analysts believe the token has not yet said its final word for this cycle. X user WIZZ told their more than 800,000 followers that ICP is approaching a bounce area, predicting that the next push could stretch to as high as $20.
Rushi was even more optimistic. The analyst claimed that a potential price explosion for Bitcoin (BTC) to $220,000 in the next 45 days might trigger an overall altcoin resurgence, with ICP “going straight” for $100.
It is important to note that the primary cryptocurrency has seen better days, and reaching that level seems unlikely (at least for now). As of this writing, BTC trades at just over $95,000, representing a 10% decline over the past week.
This Metric Flashes the Buy Signal
According to ICP’s Relative Strength Index (RSI), the valuation could indeed rebound in the short term. The technical analysis tool measures the speed and magnitude of recent price changes to estimate whether the asset is about to undergo a reversal. It ranges from 0 to 100, and ratios around 30 signal that the token is oversold, indicating a potential surge may be incoming. On the other hand, anything above 70 is seen as bearish territory. ICP’s RSI plummeted below 30 a few hours ago, while currently it is set just north of that mark.
