According to reports from AMBCrypto, Internet Computer [ICP] has experienced a significant rally, surging 21% since May 4th. The cryptocurrency reached a local high of $2.89 during this period, demonstrating strong momentum in the current market environment. The price movement comes as the broader cryptocurrency market benefits from Bitcoin's steady bullish trend over the past week, which has gained nearly 10% and helped bolster altcoin sentiment.
As reported by AMBCrypto, the AI sector has emerged as one of the stronger-performing segments, with surrounding narrative strength drawing increased capital. ICP has benefited from this boost, with the price approaching $2.60 and facing rejection before pushing higher. The technical analysis shows that funding rates remained negative when ICP approached the $2.60 level, indicating that traders and speculators were willing to bet on short positions. However, these positions have faced losses as ICP pushed higher, reaching the local high of $2.89.
According to the analysis from AMBCrypto, since February, ICP has been unable to convincingly shatter the $2.8 resistance zone. The altcoin has established higher lows at $2.15 and $2.32 since late February, which psychologically implies buyers are willing to purchase at a premium compared to the $2 floor established in February. However, the swing structure on the daily timeframe remained bearish, with traders advised to beware of the $2.8-$3.0 supply zone as a bearish bastion.
As reported by AMBCrypto, the cluster of short liquidations just under $3, built up over the past 3 months, was likely to attract ICP prices higher. However, the D1 OBV showed heavy, sustained demand has not been seen during the move higher from $2. Traders are advised to anticipate a liquidity sweep of the $2.8-$2.9 area and a bearish reaction. Their bias can shift bullishly once the $2.9-$3.0 area is flipped from resistance to support.
