Crypto
ICP's First Test After the Breakout: It Pulled Back, and the Old Ceiling Held
A day after breaking out to a January high, Internet Computer slipped 3% — but its low stayed above the $3.20 level it had just cleared.
The question after any range breakout is what happens on the first pullback, and Internet Computer gave its first answer on Wednesday, September 30. After Tuesday's 9.7% jump to an intraday $3.554, ICP drifted lower and closed the day down 3.0% at $3.337. The important number was the low: $3.296, reached in the final hours of the day. That is a little above the $3.20 ceiling of the range ICP had traded in for over a week before the breakout.
Holding above an old ceiling is what technicians mean when they say resistance has turned into support, and it is the more constructive of the two outcomes this setup could have produced. It is also just one day. Volume on the pullback, about $18 million, was well below Tuesday's $30 million, which fits an orderly retreat rather than a rush for the exit. Early on October 1 the coin was trading back near $3.42. A daily close back inside the old $3.02-$3.20 band would undo the picture; until then, the breakout is intact.