Crypto analyst Seth (@seth_fin) shared with his X (formerly Twitter) followers that ICP is one of the few altcoins in the green today, hinting at the potential for a significant upward movement.

A well-known crypto analyst has highlighted Internet Computer (ICP) among the few altcoins showing resilience in a bearish market.

Chart analysis techniques applied to ICP’s price movements suggest the possibility of a breakout and subsequent price surge.

Could ICP Be the Next Big Thing? A Closer Look at the Chart

In a recent tweet, the pseudonymous crypto analyst Seth shared his observations regarding ICP’s price action. Amidst a broader market downturn, where most altcoins experienced price declines, ICP emerged as one of the few tokens in the green on August 13.

This relative strength, as Seth points out, could potentially set the stage for a significant price move. As per his analysis, ICP’s chart is presenting a breakout scenario, making it a key altcoin to watch in the coming days.

Examining ICP’s 4-hour chart further, we can identify several key technical aspects that contribute to this breakout scenario.

Highlighting the support and resistance levels, the chart showcases a rising support line forming since June. This line successfully connects several higher lows, marking the zones where buyers are consistently stepping in to purchase the token at increasing levels.

As long as ICP’s price manages to hold above this trend line, the likelihood of a bullish continuation remains high. However, a crucial resistance zone around $11.50 – $12.00 has previously halted upward price movements.

The price has faced multiple rejections at this level, indicating that it serves as a significant barrier. A breakout above this resistance could lead to stronger bullish momentum and potentially drive the price higher.

The chart also features three moving averages (MAs), which appear to be converging. These MAs (likely 20, 50, and 100-day) indicate short-term bearish pressure.

Recently, there was a bearish crossover, but the convergence of these lines suggests a shift may be on the horizon. If ICP’s price can push above these MAs, it could trigger a more sustained upward trend.

Moreover, the Moving Average Convergence Divergence (MACD) indicator adds to this analysis. The chart reveals that bearish momentum is decreasing, as evident in the shrinking red histograms.

With the MACD and signal lines close to a crossover, there is a possibility of a bullish shift, which aligns with the optimistic outlook hinted at by the tweet.

Overall, ICP’s chart presents a mixed but promising scenario. For bullish momentum to solidify, ICP needs to maintain its position above the rising support line and make a decisive break above the $11.50 – $12.00 resistance range.

A successful breach of this level could validate the upward trend, setting the stage for a stronger rally.

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