Internet Computer (ICP) Price Has Hit This Level Before – And Each Time It Bounced

Internet Computer has been in a brutal downtrend since its launch. From highs near $480, the token has fallen to current levels around $2.46. That is a 99% drop. But Dami-Defi sees something different on the weekly chart. He notes that ICP is sitting at the lower boundary of a multi-year descending channel. 

The lowest band has been tested four times since mid-2024, and each time it has held. His forecast is for a reversal from here into the $3.10-$3.50 area initially, followed by a push towards the $4.50 white midline if there’s momentum. The targets are $3.10, $4.50, and $7.00. The invalidation is a weekly close below $2.00.

What the ICP weekly chart shows

We had a look at the ICP weekly chart shared by Dami-Defi. The ICP price is trading at $2.464, up 2.33% on the week. The chart shows a long descending channel that has been containing price for years. 

The upper boundary is near $15 to $20. The lower boundary is near $2.00 to $2.50. The ICP price is currently sitting right on that lower boundary for the fourth time since mid-2024. Each previous touch led to a bounce. The first bounce went to $7. The second went to $10. The third went to $4.50. Now the fourth bounce is loading.

The white midline is drawn near $4.50. That is the first major resistance. Above that, the upper channel boundary near $7.00 is the next target. The invalidation level is a weekly close below $2.00. If the ICP price breaks below that level, the descending channel would break, and the next support would be near $1.50 or lower.

Why this bounce could be different

The ICP price has bounced from this lower boundary three times before. Each bounce was shorter than the last. That is what happens in a descending channel. The bounces get weaker, and the channel gets tighter. But that also means the channel is compressing. 

When a descending channel compresses for long enough, the eventual breakout can be violent. Dami-Defi is not calling for a breakout yet. He is calling for a bounce to the midline at $4.50 first. A weekly close above $3.10 would confirm the move. The white midline needs to flip to support for the bigger targets to come into play.

Where the ICP price goes from here

The ICP price is at $2.46. The lower boundary of the descending channel is right here. The first target is $3.10, which is a 25% move from current levels. The second target is $4.50, an 80% move. The third target is $7.00, a 185% move. 

The invalidation is a weekly close below $2.00, which would be a 20% drop from current levels. The ICP price has bounced from this level three times before. The fourth time could be the same. Or it could be the break. Dami-Defi is betting on the bounce. CoinCodex's 1-month ICP price prediction places the price at $2.36, slightly below the current level.