KEY TAKEAWAYS
Internet Computer (ICP) is breaking out from a two-year resistance trend line.
The ICP price has increased by 600% since its Oct. 10 all-time low.
Can ICP sustain its increase and move above its 2024 cycle high of $20.98?
Internet Computer (ICP) is showing renewed strength after a brutal correction, breaking free from a two-year resistance trend line.
Following a staggering 600% rebound from its October all-time low, traders are watching closely to see if ICP can extend its bullish momentum.
The key question now is whether it can surpass its 2024 cycle high of $20.98 and confirm a long-term trend reversal.
Why is ICP Going Up?
The ICP price fell under a descending resistance trend line after reaching its cycle high of $20.98 in March 2024.
Internet Computer’s downward movement was initially gradual.
It accelerated after the price created a lower high in December, confirming the diagonal resistance and the $13.45 horizontal and Fibonacci area.
Afterward, ICP fell to a new all-time low of $1.16 in October 2025, breaking down from the $3 horizontal support area.
However, bears could not sustain the breakdown, and the price created a long lower wick that took it above the $3 area.
After establishing a base of support, the Internet Computer price surged by 600% and is currently breaking out from its diagonal resistance trendline.
The trend line has been in place for two years, so a breakout above it could trigger a significant increase.
ICP has yet to close above the trend line and is struggling with the 0.382 Fibonacci retracement resistance level at $8.76.
If it successfully closes above this level, it could quickly pump to $13.45.
Momentum indicators legitimize the rally. The Relative Strength Index (RSI) is above 50 (black circle), and the Moving Average Convergence/Divergence (MACD) created a bullish divergence (orange).
Therefore, even though ICP has not yet broken out above the diagonal resistance, all signs point to an eventual close and a bullish price prediction.
What’s Next?
Since the cycle high of March, the price has completed a five-wave downward movement, culminating with the aforementioned all-time low.
What follows after a five-wave decline is either an A-B-C corrective structure or another five-wave increase.
Since the price of ICP has surged impulsively, the rally is likely a five-wave increase.
If so, ICP is in an extended wave three, which is already 1.61 times as long as wave one.
Hence, the ICP price could reach a local top near the current level and begin a corrective wave four.
Afterward, the fifth and final wave could take the ICP price to its $13.40 target.
ICP’s Rally Will Continue
With momentum indicators turning bullish and price structure signaling a potential five-wave impulse, the breakout could be more than just a short-term recovery.
A confirmed close above resistance might open the door to $13.45 and beyond, reigniting hopes of a sustained uptrend.
A brief correction remains possible, but a confirmed close above resistance could solidify ICP’s uptrend.
