ICP's 21% Surge: Can Internet Computer Break Its 3-Month Resistance?

The Internet Computer (ICP) has been one of the top performers in the altcoin market recently, with a 21% gain since May 4th. This surge can be attributed to the overall bullish trend in the crypto market, particularly in the AI sector.

As per Coinalyze data, ICP's price approached $2.60 and faced rejection, but the funding rates remained negative, indicating that traders were willing to bet on short positions. However, since then, they have faced losses as ICP pushed higher, reaching a local high of $2.89.

The price structure of ICP can give traders and investors important clues about its future trajectory. On the daily timeframe, a range formation suggests that not much higher prices are expected. Since February, ICP has been unable to convincingly shatter the $2.8 resistance zone.

Despite setting higher lows at $2.15 and $2.32 since February, the swing structure on this timeframe remains bearish. Traders should be cautious of the $2.8-$3.0 supply zone as a potential bearish bastion.