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  • Internet Computer price recovers gradually from a slump to $28.
  • A rounding bottom technical pattern bolsters ICP towards $100.
  • The parabolic SAR flipped from negative to positive reinforcing the bullish thesis.

Internet Computer is exchanging hands 150% higher than the July 20 low at around $28.15. Recovery has been slow but steady, probably due to bear’s congestion at several resistance areas. At the time of writing, Internet Computer price was trading at $71.00 on most crypto trading platforms while battling an immediate resistance at around $76. Note that a daily candlestick closure above this level  will see ICP breakout upwards as bulls eye $100, 42% above the current price.

Internet Computer Price Nurtures a Rounding Bottom Recovery Pattern

ICP appears to have spelled out a rounding bottom pattern on the 12-hour chart after the sell-off was halted at $28.15. Note that this pattern forms when an asset initially descends toward a low indicating an excess of supply. The reversal to an upward trend occurs when buyers enter the market at a low price, which increases demand for the asset. Once the rounding bottom is complete, the asset breaks out and will continue in its new upward trend.

The rounding bottom pattern is used in technical analysis to indicate a positive market reversal. This implies that investor sentiments are gradually shifting from bearish to bullish.

In case of the Internet Computer Price, a breakout from the rounding bottom pattern will be confirmed when ICP closes above the price immediately prior to the start of the initial decline. In this case the $90 psychological level. If this happens, ICP could explore the $100 psychological level.

ICP/USD 12-Hour Chart

Internet Computer Price

Note that the trading volume ideally follows the direction of the asset price in a rounding bottom chart pattern. The volume of the asset traded usually peaks at the beginning of the decline and when it reaches its previous high with building volumes on the approach. This is confirmed by ICPs trading volume from Santiment as shown in the chart below.  Realise that ICPs trading volumes reached their lowest point when the share price also reached its bottom on July 20.

Internet Computer  Volume

Apart from the technical chart pattern, the parabolic SAR flipped from negative to positive on July 21 adding credence to the bullish outlook. This bullish thesis is further accentuated by the position of the Relative Strength Index in the overbought region.

Note that a daily closure above the immediate Internet Computer price barrier at $76 is crucial to sustaining the bullish bias.

Can ICPs Bullish Bias Be Invalidated?

Closing the day under the $70 psychological level will invalidate the recovery efforts and trigger another sell-off, resulting in another correction towards the $59.77 support wall and the 50-day SMA at $42.88 respectively.

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