ICP Double Bottom Formation Hints at Bullish Rebound Toward $5-$18 Range

Internet Computer is currently witnessing some fascinating token movements within its ecosystem. As reported by @icterminal, 1,657,885 tokens have been burned, whereas 19,776,537 tokens have been minted. The fact that a large number of tokens have been minted implies that the protocol is still in a period of growth.

Source: X

The difference between mint and burn rates illustrates the areas of focus of the network, such as development and ecosystem rewards. It is pointed out by analysts that while the burn mechanisms are helpful in controlling supply, the token is still in a net inflationary position. It is crucial for investors to understand this balance of supply and growth.

Also Read: Internet Computer (ICP) Eyes $3.60 Breakout as Bulls Test Key Resistance Levels

ICP Eyes Bullish Rebound Amid Double Bottom Formation

Internet Computer also looks promising, as it establishes a clear double bottom formation, which also tests a major support level. According to analysts, it is critical to remain above the $2.761 mark to continue the upward trend. Otherwise, it may lead to a sharp decline to the $1.137 mark. The double bottom formation indicates that buyers are emerging to buy the token at this stage.

Source: X

The price forecast for the token is still positive across varying time intervals. The price is set to reach between $5 and $10, then $14, but a longer-term prediction states that ICP will cost $18 if market positivity continues. The current market activity is closely followed by traders, as the next market sessions will indicate whether the ICP will continue to rise or if there will be further consolidation.

ICP Struggles to Recover After Strong Rejection

Technically, ICP continues to be in a definite downtrend with lower highs and lower lows. The rally in November was decidedly rejected, creating a bull trap and indicating distribution. ICP is back to the $2.70-$2.90 support zone, testing cycle lows. Today, its momentum continues to be negative, with the RSI at about 40 (below the centerline and hence not oversold) and the MACD staying negative without a bullish crossover.

Source: TradingView

It is currently at the decision area in ICP. To form some kind of consolidation, it is currently necessary to hold current support levels. To suggest anything positive in regard to trends is to close above $3.50 during the week. Losses of $2.70 pose further risks of breaking out at $2.00 to $2.20 levels.

Also Read: Internet Computer (ICP) Set to Surge: Key Price Targets $4 – $17.50