Internet Computer Token Rises 16% as Network Activity Surges

TLDR

• ICP token up 16% in past week despite overall market dip
• Potential reversal forming, threatening recent gains
• $9.90 resistance level rejection could push price below $9.23 support
• Network activity and fees surged over 5000% in past 30 days
• Founder highlights ICP network’s reliability at Token2049 conference

The cryptocurrency Internet Computer (ICP) has seen significant gains and increased network activity in recent weeks, even as the broader crypto market experiences volatility.

According to market data, the ICP token has risen 16% over the past week, outperforming many other cryptocurrencies during a period when the overall market was down several percent.

This upward price movement for ICP began in early August and has largely continued through September, with only minor dips along the way.

The token is currently trading around $9.60, having faced resistance at the $9.90 level. Some analysts warn that rejection at this resistance point could lead to a pullback, potentially pushing the price below the $9.23 support level.

The relative strength index (RSI) for ICP is also signaling that bulls may be reaching their limits in the near term, adding to the possibility of a price correction.

BREAKING: Internet Computer has generated more fees than @Optimism, @arbitrum, @avax, and @0xPolygon in the past 30 days. pic.twitter.com/lqaUoA5cc9

— Token Terminal (@tokenterminal) September 24, 2024

If the token fails to stabilize at current levels, bears could potentially drive the price down to around $8.09. However, if support holds, there is a chance ICP could break through resistance and target the $11.41 level.

Despite these short-term price fluctuations, Internet Computer has seen a dramatic increase in network activity over the past month. Data from Token Terminal shows that ICP network fees have surged by over 5000% in the last 30 days.

This spike in activity has led Internet Computer to generate more fees than several other prominent layer-1 blockchains, including Optimism, Arbitrum, Avalanche, and Polygon.

The surge in network usage is largely attributed to bob.fun, a blockchain application built on top of the Internet Computer protocol. This increased adoption demonstrates growing interest in ICP’s technological capabilities.

Dominic Williams, Founder and Chief Scientist of the DFINITY Foundation, which develops the Internet Computer protocol, recently spoke at the Token2049 conference in Singapore. He emphasized the reliability of the ICP network, stating,

“When you’re running software or a system on the ICP network, it never crashes or stops running.”

This focus on stability and performance appears to be resonating with some developers and users in the blockchain space.

Internet Computer’s market capitalization currently stands at approximately $4.5 billion, reflecting its position as a mid-sized player in the cryptocurrency ecosystem.

The recent price rally and surge in network activity have brought increased attention to the project, though it’s important to note that cryptocurrency markets are highly volatile and subject to rapid changes.

The ICP token’s ability to maintain its upward momentum will likely depend on a combination of factors, including broader market conditions, continued network adoption, and the project’s ability to deliver on its technological promises.