The cryptocurrency market is currently experiencing significant volatility, with the total market capitalization declining by nearly 2% today. Bitcoin (BTC) and Ethereum (ETH) have both seen notable drops, with ETH falling over 3%. This downturn has resulted in approximately $1.08 billion in total liquidations, with long positions accounting for $943 million of that amount.
Amidst this market decline, Internet Computer (ICP) has emerged as a strong performer, registering a substantial 29% gain over the past 24 hours. This upward movement suggests potential underlying strength, and its chart is currently displaying a "Power of 3" pattern, which is often associated with institutional accumulation and the initial stages of significant bullish reversals.
The "Power of 3" Pattern Explained
On the daily chart, ICP is demonstrating a textbook "Power of 3" structure. This pattern is characterized by three distinct phases: Accumulation, Manipulation, and Expansion.
Accumulation Phase
Between March and September, ICP was trading within a narrow consolidation range, fluctuating between $6.10 and $4.58. This period, marked by the formation of a horizontal rectangle, likely represented a phase where significant market participants were quietly building their positions as price volatility decreased.
Manipulation Phase
In October, ICP experienced a brief dip below its established accumulation range, falling to approximately $2.78. This sharp decline triggered stop-losses for many traders and induced panic selling, a common characteristic of the "manipulation" phase that often precedes a market reversal. However, the price quickly recovered, indicating that selling pressure was diminishing and that strong hands were re-entering the market.
Expansion Phase Underway?
Following the price bottom, ICP has seen a significant rebound. It has successfully reclaimed the $4.58 range low and recently surpassed the 200-day moving average (MA) at $4.87. Currently trading around $5.00, the token's performance suggests that the expansion phase, the final stage of the "Power of 3" pattern, may now be in progress.
Future Outlook for ICP
For the "Power of 3" structure to be fully confirmed, ICP needs to maintain its position above the $4.58 support level and achieve a decisive break above $6.10. A breakout of this magnitude could trigger a substantial upward movement, potentially driving the price towards $9.41. This target represents an 88% potential upside from current trading levels, aligning with the measured move calculated from the accumulation range.
Traders are advised to look for confirmation signals, such as a breakout accompanied by high trading volume and sustained closes above the $6.10 mark. Conversely, a failure to hold the $4.58 support level could invalidate the bullish outlook and lead ICP back into a consolidation pattern.
For the time being, market observers are closely watching to see if ICP can sustain its current momentum and fully transition into the expansion phase. Such a development could signal the commencement of a broader bullish cycle for the token.