The price of Internet computers has behaved well over the past few weeks. ICP, its native token, is trading at $ 36.40, about 72% above the low from December of last year. The price is a few points lower than last week’s high.
ICP defies the trend
Internet Computer is a relatively new blockchain project that went public in May 2021 during the height of the cryptocurrency rally. The coin hit an all-time high shortly after its IPO, pushing it to become one of the top 10 cryptocurrencies.
The strong performance was short-lived, as the price of the internet computer fell to an all-time high during the cryptocurrency sell-off that occurred between May and July of last year. It has never recovered since then, despite having a market cap of over $ 7 billion.
For starters, Internet Computer is a venture capital funded blockchain project that seeks to become a leading chain for project development. It is operated by Dfinity, a Switzerland-based company that has received funding from Andreasen Horowitz and Polychain Capital. Its goal is to decentralize all parts of the economy so that people have little use of centralized platforms like AWS and Azure.
Over the past few months, a number of projects have been built in Internet Computer. Some of the best projects built using the Internet Computer are Fleek, DSCVR, Distrikt, and Origyn. Yet the adoption of the network has been relatively disappointing.
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The recent rise in the price of ICP is mainly due to the launch of a bridge with Ethereum. The bridge will allow ERC-20 tokens to exist natively on the Internet Computer network. This bridge is known as Terebethia and it enables cross-chain communication, asset mirroring and transfers between networks.
Yet like all cryptocurrencies, the biggest risk to the price of the internet computer is the Federal Reserve. In recent months, the Fed has hinted that it will start raising rates this year, likely in March. Analysts believe risky assets like ICP will struggle in a period of high interest rates.
Internet Computer Price Prediction
The four hour chart shows that the ICP price has been trending upward over the past few days. The coin managed to break through the 25 and 50 day moving averages. The Relative Strength Index (RSI) is also trending upward.
Still, a closer look shows he’s about to form a double-top pattern with the top at $ 37.70 and his chin at $ 27. Therefore, while the uptrend is likely to continue, there is a risk that the price will experience a pullback in the short term. The bullish view will be confirmed if the price breaks above the key resistance at $ 40.