Internet Computer Price Forecast: ICP surges as Open Interest  and trading volume hit a 3-year high

Internet Computer (ICP) price continues to trade in green, trading above $8 at the time of writing on Friday, extending gains to over 80% so far this week. On-chain data shows renewed market activity, with open interest and daily trading volume climbing to their highest levels since March 2022. On the technical side, ICP suggests further gains targeting beyond the $9 mark.

Internet Computer’s derivatives and on-chain data show bullish bias

CoinGlass’ data show that the futures’ OI in Internet Computer at exchanges reached a new all-time high of $237.92 million on Friday. Moreover, during the same period, the OI on the Binance exchange has reached $66.5 million, levels not seen since March 2022. An increasing OI represents new or additional money entering the market and new buying, which could fuel the current ICP price rally.

Santiment data indicate that the ICP ecosystem’s trading volume (the aggregate trading volume generated by all exchange applications on the chain) reached $1.41 billion on Tuesday and steadied around $1.1 billion on Friday, the highest level last seen since March 2022. This volume rise indicates a surge in traders’ interest and liquidity in ICP, boosting its bullish outlook.

Internet Computer Price Forecast: ICP bulls aiming for levels above $9

Internet Computer price broke above the descending trendline (drawn by connecting multiple highs since mid-August) on Sunday and found support around it the next day. ICP extended its rally by more than 70% over the next three days, reaching levels above $6. At the time of writing on Friday, ICP surged more than 23%, trading above $8.

If ICP continues its upward trend, it could extend the rally toward the next daily resistance level at $9.12.

The Relative Strength Index (RSI) on the daily chart is 84, pointing upward toward overbought territory, indicating strong bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) showed a bullish crossover last week, which remains intact, indicating the continuation of an upward trend. 

On the other hand, if ICP faces a correction, it could extend the decline to find support around the daily support at $7.86.