July 2025 - Internet computer ICP ;-(Every other week Without Worries is asked for his thoughts on Internet Computer project. It is very clear a number of folks are invested and for a few it is the only crypto token they hold.
Disclaimer . Without Worries does not hold or trade this crypto token. My opinion is impartial.
Two questions every trader or investor must ask themselves before exposure to any asset:
What is the trend?
Support or resistance, which is it?
To not answer either or even ignore the answers; that is to ignore the facts of the chart. You’re here to make money, nothing else.
The questions are best answered on a higher time frame where possible, especially a time frame where market pivots align with the Relative Strength Index (RSI).
Question 1, what is the trend?
Start by looking left, on both Price action and RSI. The first lower high is observed in tandem with a lower high in RSI. This trend is matched in RSI as lower lows in price action and RSI break legacy support. This is clearly a downtrend.
Question 2, Support or resistance, which is it?
As before, look left. Typically best to start with higher timeframes. Support levels are identified by observing historical price charts where the asset has repeatedly stopped falling and reversed upwards. Similarly, resistance levels are identified by observing historical price action where the asset has repeatedly stopped rising and reversed downwards. These levels are often marked by previous swing highs, areas where the price has consolidated, or psychological round numbers (blue and red arrows).
It is fairly clear price action on the above chart now finds resistance on past support.
Bonus observation
With questions 1 and 2 both answered, it is clear future price action favours a bearish outlook on the macro outlook. A long term bear flag has established, now awaiting confirmation. That confirmation shall be a print of rejection from the underside of the flag, which will also be an additional lower high around $10. It is entirely possible (and is often the situation for flags to print their forecasts without confirmation!). After the confirmation price action will begin its decent towards 60 cents.
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