Internet Computer (ICP) is among the top-performing cryptocurrencies today (January 14), with its valuation surging by over 19%.
However, one important indicator suggests that the bears might regain control in the short term.
The Risks of an Incoming Correction
Just recently, ICP pumped above $4, the highest level since the beginning of December 2025. Its market capitalization surged well beyond $2 billion, making it the 57th-largest cryptocurrency.
Despite the sharp rise, ICP’s Relative Strength Index (RSI) hints that a potential pullback may be approaching. The technical analysis tool measures the speed and magnitude of the latest price changes to give traders a clearer view of whether a reversal is on the horizon.
It varies from 0 to 100, and ratios above 70 signal that ICP is overbought and on the verge of a decline. On the other hand, readings below 30 are interpreted as buying opportunities and could mean that the asset is oversold. On January 13, ICP’s RSI climbed to a two-month peak of almost 80, whereas it currently hovers around 73.
Not Pushing the Brakes?
Contrary to the RSI alert, crypto X is filled with analysts who believe ICP has no intention to slow down anytime soon. Earlier this month, X user Bitcoinsensus spotted a “massive bull flag” forming on the weekly chart, envisioning a potential breakout to as high as $14.
For their part, the analyst using the moniker KNIGHT predicted a rally to $10 in the first quarter of the year. X user CAPT. PARA8OLIC TOBLERONE also shared an interesting forecast.
They think ICP could head south in the following months and drop below $1.30. However, after that, the asset may launch a major bull run, skyrocketing beyond $65.
Meanwhile, the recent exchange netflows reinforce the bullish scenario. Data from CoinGlass shows that outflows have surpassed inflows over the past several weeks, suggesting that investors have shifted to self-custody, thereby reducing immediate selling pressure.
On the other hand, rising inflows mean that market participants have transferred some of their holdings into centralized platforms, which is typically seen as a pre-sale step.
The post This ICP Metric Soars to a 2-Month High After 19% Surge: Pullback on the Way? appeared first on CryptoPotato.
