Internet Computer (ICP) has been stagnant in price action since mid-June, trading around $2.17. The 9-day and 26-day moving averages are trending sideways, reinforcing this muted price action with an insignificant daily change.
Interestingly, ICP’s price action points to a potential breakout that could determine the altcoin’s direction.
ICP crypto is approaching a breakout of the triangle formation
Looking at ICP price, the altcoin is trading at the top of a triangle consolidation pattern. The pattern is characterized by horizontal support at $2.12 and oblique resistance from $2.50 to $2.20. It took about two months.
Price contraction towards the top indicates that volatility is low. Often low volatility precedes high volatility, indicating a potential pattern breakout.
For now, ICP is trading in a consolidation. However, breaking and staying above the sloping resistance could lead to a rally to $2.50 or higher.
This was supported by Bull Bear Power (BBP) rising. Additionally, transactions above 10,000 ICP in the Binance spot market have been increasing since July 15.
Collectively, over 503 million ICP tokens were aggressively accumulated in these two weeks. However, from a broader perspective, ICP’s acquisition activity began in the second half of June.
On the other hand, if ICP breaks below the $2.12 support, further price declines can be expected. So the next key demand level is $2, with the extreme bear target being the $1-1.16 zone established on October 10.
Why does network activity differ?
While ICP was bullish on the technical outlook, on-chain activity was bearish. For example, overall transactions fell from 9,612 per day to this month’s low of 3,680. These figures represented a decrease of approximately 62% in network usage.
However, ICP on top According to the number of monthly transactions, blockchains have 9.40 billion, followed by Solana (SOL) with 8.60 billion.
Similarly, the volume decreased further and formed the lowest level of this month. It dropped from 2.869 million ICP to 362.7 thousand ICP tokens, further reinforcing the low network activity.
Final Summary
- Internet Computer was trading at the top of the consolidation pattern as the accumulation trend accelerated.
- ICP’s on-chain activity was diverging from the bullish technical outlook, reinforcing that a potential breakout was looming.
