The cryptocurrency market has been experiencing a bearish atmosphere recently, but amidst this downturn, Internet Computer (ICP) has shown remarkable bullish activity. The native token of Internet Computer, ICP, has managed to gain significant ground, despite the current market conditions. This article explores the factors contributing to ICP’s surge and analyzes its potential for further growth.
ICP has witnessed a substantial increase in its price, with a weekly rise of over 80%. Despite briefly losing its hold on the crucial $10 handle, the token currently trades at $9.93. Over the weekend, ICP experienced a surge of 30%, reaching a peak of $11.50. This surge has propelled ICP into the top 20 cryptocurrencies by market capitalization. The token’s trade volume also increased by a significant 73% to $730 million during this time frame.
Internet Computer has stood out as the biggest gainer of the week, defying the current market volatility. With six consecutive green candles in the daily time frame, its price has soared by approximately 120% from a low of $5.20 on December 12th, reaching a new yearly high of $11.30. This price surge has allowed buyers an opportunity to extend the rebound, as the coin broke through several significant resistances.
Internet Computer is a network that distinguishes itself through its functionality and size in the realm of blockchain technology. Launched in 2021, this network offers developers all the necessary tools to create decentralized applications (dApps). Unlike other layer 1 and layer 2 networks such as Ethereum, Polygon, and Cardano, Internet Computer’s abundance of functionality sets it apart. Users can utilize its infrastructure to create and host their applications, making it a unique player in the blockchain space.
ICP’s price surge can be attributed to its support for Bitcoin, the largest cryptocurrency globally. Due to this connection, Internet Computer’s canister smart contracts can send, receive, and hold Bitcoin on the network. These canisters function similarly to Bitcoin holders on the BTC network, enabling decentralized swaps and trading. Additionally, ICP has ckBTC, a token that has a 1:1 backing with Bitcoin.
A significant development contributing to Internet Computer’s valuation spike is its recent collaboration with Gaudi Knowledge Association and Moon Labs. This partnership, in collaboration with Internet Computer Project’s South Korean affiliate, aims to recreate Gaudi’s architecture, arts, and incomplete architectural blueprints in the Metaverse on ICP. This collaboration highlights the network’s potential for innovation and growth.
With no sign of weakening price behavior and a notable increase in volume, Internet Computer is poised for a potential rally. If the ICP price sustains itself above the $9.5 barrier, it may pursue higher goals, ranging from $11.50 to $14.50. The support of the 50-day and 100-day moving averages further solidifies ICP’s position. Some experts speculate that the coin is forming a bullish flag pattern, which could lead to further price acceleration. In such a scenario, ICP might test the weekend high of $11.90.
Despite the bearish market atmosphere, Internet Computer (ICP) has emerged as a standout performer, with an increase of over 80% in just a week. Its support for Bitcoin, unique functionality, and notable partnerships have attracted significant attention and investment. As the cryptocurrency market continues to evolve, it will be intriguing to see how Internet Computer establishes itself as a prominent player in the world of decentralized applications. Investors should conduct thorough research and carefully evaluate the risks before making any investment decisions.
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