Internet Computer (ICP) has been in a negative mood since March 27, 2024, falling from $20.96 to a low of $6.68.
The current price of ICP stands at $6.81, and traders should keep in mind that a risk of further decline still persists.
ICP has been a volatile crypto asset over the past several months but it is important to say that big price drops have prompted the DEFINITY Foundation, the company behind developing the Internet Computer protocol, to focus on key areas of development to revitalize the token’s price action and further advance the protocol’s capabilities.
Next week, Internet Computer is hosting a full day of Chain Fusion festivities at the EthCC conference on July 10th in Brussels and the event will be focused on multichain topics. But where is the price of Internet Computer (ICP) going next, and what can we expect from the rest of July 2024?
Today, Crypto Lists will discuss ICP price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 A decentralized alternative to centralized cloud providers
- 2 Governance and more
- 3 The DEFINITY Foundation unveiled an updated roadmap
- 4 Technical analysis for ICP
- 5 Important support & resistance levels for ICP
- 6 What speaks for the rise in the Internet Computer (ICP) price
- 7 What indicates the downfall of the Internet Computer (ICP)
- 8 What do analysts and experts say?
A decentralized alternative to centralized cloud providers
The Internet Computer (ICP) is a set of protocols that allow independent data centers around the world to band together and offer a decentralized alternative to the current centralized internet cloud providers. The Internet Computer (ICP) enables Web3 services to operate entirely on-chain, serving as the sole protocol for developers to construct and users to experience fully decentralized applications.
The Internet today is highly centralized and the basic idea of this project was to create a new kind of decentralized internet where independent data centers worldwide could collaborate to establish an alternative to cloud services provided by companies such as Amazon Web Services and Google Cloud, which currently dominate the internet infrastructure.
Governance and more
ICP developers say that this project has some major advantages over the centralized alternatives because it operates via open standards and avoids the conflicts of interest that can arise when a major cloud-computing provider hosts products that compete with its own services. Further, the Internet Computer seeks to provide a fundamental alternative, empowering developers to build, host, and deliver applications in a decentralized manner, facilitating the direct deployment of websites onto the public internet.
The ICP token serves various purposes: governance (allowing holders to vote on network decisions), rewarding participants for positive contributions, and covering transaction fees. One way people can think of ICP is as a way of transforming crypto into processing power — the network will determine a fee based on the amount of computing power required by a developer’s project. As long as the fee is paid, the website will operate on the public internet.
The DEFINITY Foundation unveiled an updated roadmap
Internet Computer (ICP) has been in a negative mood since March 27, 2024, and significant price drops have led the DEFINITY Foundation, the developer of the Internet Computer protocol, to concentrate on crucial development areas to boost the token’s value and enhance the protocol’s features. The DEFINITY Foundation unveiled an updated roadmap to facilitate increased artificial intelligence (AI) blockchain adoption and the highlighted aspects of the roadmap outline two “milestones” in the Internet Compute platform domain: Tokamak and Stellarator.
Tokamak aims to cut down latency by increasing the block rate of each subnet and adding a new synchronous ingress submission endpoint. Stellarator, on the other hand, is set to boost the storage layer, allowing subnet blockchains to support over 1TB of canister smart contract storage and enhancing the efficiency of the consensus layer.
Positive information is that ICP’s Chain Fusion technology will allow direct interoperability with major blockchains, including Bitcoin, Ethereum, and other Ethereum Virtual Machines (EVMs). Once the roadmap is implemented, analysts expect that it will positively affect the cryptocurrency’s price or its potential to regain bullish momentum and drive adoption for various use cases.
Technical analysis for ICP
ICP has weakened from $20.96 to $6.68 since March 27, 2024, and the current price stands at $6.81. For now, bears continue to control the price movement and as long the price of ICP is below the line that I marked on the chart below, this crypto remains in the SELL-ZONE.
Important support & resistance levels for ICP
On this chart (the period from November 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bears control the price movement of ICP for now, but if the price advances above $8, the next target could be resistance that stands at $10. The current support level is $6, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $5. If the price drops below $5, which also represents strong support, the next target could be located around $4.
What speaks for the rise in the Internet Computer (ICP) price
Crypto analysts are concerned that should Bitcoin fall below $55,000, it could trigger a larger sell-off, potentially making it challenging for ICP to maintain its current price levels. However, for the bulls to take again control of price movement, a move above $10 would be beneficial. Fundamentals of ICP are strongly tied to the overall cryptocurrency market (especially with Bitcoin), and if the price of Bitcoin jumps above the $65000 resistance again, we could see ICP at higher price levels.
What indicates the downfall of the Internet Computer (ICP)
The downfall of ICP can be influenced by a wide range of factors, including market sentiment, regulatory developments, technological advancements, macroeconomic trends, and more. ICP is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency.
The current support level for ICP stands at $6, and if the price falls below this level, the next target could be strong support at $5. The price of ICP is correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $55000 price level, that would probably have a negative influence on the price of ICP.
What do analysts and experts say?
ICP remains under pressure like Bitcoin and the rest of the cryptocurrency market and traders should keep in mind that a risk of further decline still persists. Crypto analysts agree that ICP is a highly risky investment, and its price can fluctuate dramatically over short periods, leading to substantial gains or losses for investors. Crypto analysts also said that the Internet Computer requires more robust hardware than traditional blockchain projects which could be a problem because it potentially threatens its ethos of decentralization by limiting the number of potential participants.
So, if the hardware requirements are too large, only major players would have the capacity to establish data centers and engage in participation. In the upcoming weeks, the price of ICP will continue to be notably impacted by the general situation in the cryptocurrency market, as well as concerns about a potential economic downturn, increasing global tensions, and the proactive monetary strategies of leading central banks.
