ICP price has gone parabolic in the past few days, reaching its highest point since November 20th. Internet Computer jumped to a high of $4.6, up by 75% from its lowest level in December, bringing its market capitalization to over $2 billion.
ICP Price Soaring After the Mission 70 Proposal
Internet Computer token has jumped in the past few days as investors react to the Mission 70 proposal that seeks to reduce ICP’s inflation and create value to its holders.
The proposal aims to reduce annual inflation by at least 70% by the end of this year by increasing demand and reducing supply. It will achieve this by reducing supply by adjusting reward structures. The demand will be boosted by increasing the token burn
It also aims to shorten the dissolution delays and proportionality in lowering reward levels. Mission 70 also proposes reducing rewards for legacy Gen-1 nodes and relying on SEV-capable hardware to operate smaller but more secure subnets.
ICP price is also soaring as Internet Computer positions itself as an on-chain cloud and artificial intelligence (AI) platform. In this case, ICP tokens will be burned whenever apps run on the network.
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Meanwhile, the ICP token has jumped as whales stop selling. The chart below shows that whales have been in a selling spree as the token crashed in the past few months. They have now stopped selling, which has eased pressure on the token.
Internet Computer token has also soared as the open interest jumps. Its open interest rose to over $211 million, its highest level since November 18 and much higher than the December low of $120 million.
Internet Computer Price Technical Analysis
The daily timeframe chart shows that the ICP price rebounded and reached its highest level since November. This rebound happened after it formed a double-bottom pattern at $2.80 and a neckline at $6. A double-bottom is one of the most popular bullish reversal patterns in technical analysis.
The coin has moved above the 50-day and 100-day Exponential Moving Average (EMA) as the Supertrend has turned green. However, the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, the most likely situation is where the token retreats a bit as investors book profits. If this happens, it may drop to the key support at $3.5 and then resume the uptrend.
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