Why did Internet Computer Price surged by 22%?

Key Takeaways

• The Internet Computer price soared by more than 30% since the beginning of the month & continues to flash extreme bullish signals 
• The bulls appear to be well positioned and hence a significant upswing may lead the price to reach the milestone above $10
• The ICP price is determined to rise high but the dropped development activity and the social dominance may hinder the rally

Internet Computer price has been largely bullish since the beginning of the month and can add up another 30% to their value. The token has been printing consecutive bullish candles without any major bearish interference. Moreover, the trend may remain bullish as the buying pressure continues to mount, which may assist the price rise toward the next milestone. In the meantime, the platform has launched ‘Liquid Bitcoin’ which offers faster and cheaper BTC transactions. 

The decentralized platform recently launched a new token called ckBTC which is pegged 1:1 to Bitcoin. This token is a new version of BTC that is cost-effective and liquid for faster and cheaper transactions on the Internet Computer network without compromising security or decentralization. The token is created and destroyed by the network governed by a DAO, which offers layer 2 capabilities to Bitcoin. Therefore, with this significant step, the ICP network is believed to thrive, adding more value to its token. 

Read more: Algorand Price Prediction

Internet Computer (ICP) Technical Overview

Source: Tradingview

• The Internet Computer price has been incremental since the start of 2023 but has gained immense bullish momentum in the past fortnight
• The price is trading along the lower trend line which is offering a strong base for the price to rebound in case of a massive bearish action
• The ICP price has just rebounded after hitting the trend line and appears to be poised to hit the interim resistance zone between $7.25 to $7.45 as the ADX is extremely bullish
• Once these levels are cleared, the next plan of action lies to rise above the higher targets at $8.68 initially and later at $9.34 which may assist the price in reaching $10

Internet Computer On-Chain Overview

Internet Computer Development Activity

Source: Santiment

The development activity is recorded on the GitHub repository, which is usually public and accessible to all. The metrics determine the seriousness of the team behind the project to build a strong & workable product while keeping the basic features of decentralization. It also indicates whether the platform is gaining traction or not. 

The rise in development activity that occurred a few days ago indicates that the developers are working hard to deliver new features and are determined to load the projects with new upgrades. However, the present levels have dropped, indicating a halt in the developer’s activity, which may not be good for the token’s price. 

Read on: Bitcoin Price Prediction

Internet Computer Social Dominance

Source: Santiment

The social dominance of the asset is calculated by comparing the social volume, which is the number of searches for the token, to the combined social volume of the top 100 tokens according to their market capitalization. If the social dominance rises by 50%, then it is considered that the number of messages or posts regarding the token is equal to 50% of the combined messages or posts of the top 100 tokens. 

The social dominance of ICP has been largely varying but, woefully, has maintained a descending trend. This indicates the price is losing traction as the social volume of the token has dropped considerably. 

Concluding Thought

Internet Computer price has witnessed a massive surge in the recent past and is believed to remain elevated until it reaches the interim targets. However, the dropped development activity and the social dominance may hinder the pace of the rally. Meanwhile, once the market ceases the bearish interference, the ICP price is likely to kick start a fresh bullish run to rise beyond $10.