ICP price is close to confirming a potential breakout from a falling wedge pattern that could launch it toward $10 and beyond, especially as stablecoin supply on the network continues to grow.
Summary
- ICP price is up over 330% from its lowest point this year.
- Stablecoin supply on the network has surged 45% in the last 7 days.
- A multi-year falling wedge pattern has formed on the ICP weekly chart.
According to data from crypto.news, Internet Computer (ICP) has staged a strong comeback over the past few weeks, rising over 330% from its year-to-date low of $2.23 on Oct. 11 to a high of $9.73 on Saturday, Nov. 8. It has since settled at $7.19 at press time amid some profit-taking. Despite these gains, it is still short 41% of its yearly high of $12.32.
ICP price soared as it continues to grow its presence in the DeFi industry. According to DeFiLlama, the total value locked across DeFi protocols on the network has jumped from $25 million on Nov. 1 to $48.7 million last check on Nov. 11. Also, stablecoin supply on the network has increased by almost 45% in the last seven days to over $6 million.
Another major catalyst driving its gains comes from the network stepping into the artificial intelligence space with the launch of Caffeine. The new platform, built on Internet Computer, enables users to create fully functional websites and applications from scratch without needing to write a single line of code.
With the launch of Caffeine, ICP has effectively positioned itself as a leading contender in the AI crypto space at a time when investor demand for AI-related projects remains strong. Other AI-focused projects, such as Near Protocol (NEAR) and the Artificial Superintelligence Alliance (FET), were each up over 40% in the last 7 days.
ICP price has been trading within a falling wedge pattern on the weekly chart since March 2024. A falling wedge is a bullish reversal pattern that forms when an asset’s price moves within two descending and converging trendlines.
A breakout above the upper trendline typically leads to sustained gains over the following weeks, while a drop below the lower trendline could lead to a deeper correction ahead.
At press time, ICP was also hovering just above $6.3, a crucial horizontal level that had previously acted as both support and resistance. A rebound here could confirm it as the new base price and could open the door for a sustained move upwards.
For now, the next key target lies in the $10-$11 zone, an area that acted as resistance multiple times in 2024. The target zone lies roughly 40%-55% above the current price.
A clean break above this range would confirm the falling wedge breakout and could set the stage for a longer-term uptrend toward higher price levels.
Momentum indicators were largely favoring bulls and the positive outlook for the ICP price. The MACD has formed a bullish crossover, with both lines widening to the upside. At the same time, the RSI is rebounding from the neutral level at 50, a telltale sign of increased demand from buyers.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
