Internet Computer (ICP): Negative Divergence Threatens Further Decline
beincrypto.com 05 August 2024 18:07, UTC The native token of the Internet Computer blockchain ICP has witnessed a 14% price drop as the general market witnesses a decline.
Amid the altcoin’s price decline, its trading volume has skyrocketed by over 110%. This foists a negative divergence upon the market and hints at a further price decline.
More Declines Lie Ahead for Internet Computer
This divergence between ICP’s price and its trading volume in the past 24 hours suggests that many market participants are actively selling the asset, driving its value further downward.
ICP’s Aroon Down Line at 100% as of this writing confirms the strength of the current downtrend. An asset’s Aroon indicator measures its trend strength and identifies potential price reversal points.
Read more: Internet Computer (ICP) Coin Explainer for Beginners
An Aroon Down line at 100% indicates a very strong downtrend. It signals that the asset’s price has consistently made new lows, showing a clear downward momentum.
ICP Price Prediction: Coin May Plunge to an Eight-Month Low
While extreme readings like this usually precede a reversal, ICP’s Awesome Oscillator (AO) suggests that the bearish bias currently plagues the altcoin is too significant for any rebound to occur soon. At press time, the coin’s AO is below zero at -0.67 and presents only red histogram bars.
An asset’s Awesome Oscillator measures market momentum. When the bars on the AO are red, it typically indicates that the oscillator is below the zero line and the market is experiencing bearish momentum.
Since July 23, ICP’s AO has consistently returned only red bars. This is a clear signal that selling pressure dominates the market, putting the coin at risk of further devaluation.
If selling pressure remains dominant, ICP’s price will plummet to $6.31, marking the second time the altcoin has traded at that level since December 14.
Read more: Internet Computer (ICP) Price Prediction 2023/2025/2030
However, if sentiment shifts and ICP sees an uptick in demand, this will push its price toward $0.23.
