The Internet Computer Protocol (ICP) continues to trade below key technical levels, with a persistent multi-week downtrend keeping the asset under bearish control. Despite tentative efforts to establish support, ICP has failed to reclaim its short-term moving averages, signaling that sellers currently have the upper hand.

Price action for the digital asset remains suppressed below both its 9-day and 20-day exponential moving averages (EMAs). For any bullish momentum to build, the first technical hurdle would be a sustained close above the 9-day EMA. Until then, the path of least resistance appears to be sideways or downward.

Mixed Signals from Technical Indicators

While the overall trend is bearish, a closer look at technical indicators reveals a more nuanced picture. The Moving Average Convergence Divergence (MACD) remains in negative territory, but its histogram bars have been contracting. This often suggests that downward pressure is beginning to ease, even if a reversal isn’t imminent.

Meanwhile, the Relative Strength Index (RSI) is hovering in the low 40s. This neutral reading indicates a lack of strong momentum in either direction. It suggests the market is neither deeply oversold, which might trigger a bounce, nor is it showing signs of strong buying interest. The current state points more toward consolidation than a continuation of the steep decline.

Order Books Signal a Stalemate

An analysis of the order book highlights the tight range confining ICP’s price. Three significant bid walls are providing substantial liquidity support, acting as a floor against further immediate declines. A breach of these levels could expose the cryptocurrency to a deeper slide toward its next support structures.

On the upside, multiple ask walls present formidable obstacles. A major concentration of sell orders is positioned at a key psychological price point, creating a firm ceiling that is capping any recovery attempts. For the price to advance, buyers would need to absorb this supply, which would require a significant shift in market sentiment.

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