ICP price remained in a technical bear market despite the ongoing Internet Computer growth and momentum. The Internet Computer token was trading at the key support level of $2.50 on Monday, down by over 75% from its highest point in November last year. Will the token rebound or continue to fall?
Internet Computer Network is Thriving
The ICP token has remained under pressure in the past few months, moving from a high of $9.8 in November to the current $2.5, a move that has shed billions of dollars in value.
This decline has occurred despite ongoing positive news about the ecosystem. For example, the network reached a deal with the Government of Pakistan to power its sovereign cloud infrastructure. The goal is to ensure sensitive data is stored in the country, a move that will reduce its reliance on foreign providers.
Additionally, the deal will launch Pakistan’s subnet, a national messenger app, and access to Caffeine, its AI builder platform.
Meanwhile, data shows that ICP’s burn rate has accelerated in the past few weeks. It has burned 2.5 million tokens this year, a trend that will accelerate with the implementation of Mission 70. Mission 70 aims to reduce the annual inflation of ICP tokens by 70% by the end of the year.
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Whale investors have continued to grow in the past few months. As the chart below shows, the number of whales has jumped to 3,527 from a low of 3,375 in October last year. Similarly, shark investors have jumped to 2,000 from a low of 1,847 in August last year. Sharks are investors who hold between 5k and 10k coins, while whales hold between 10k and 100k.
Additional data suggest that the supply of ICP tokens on exchanges has continued to decline over the past few months, falling from a high of 32.72 million in December to 1.07 million today. Falling exchange balances are a bullish sign as they signal more accumulation by investors.
ICP Price Technical Analysis
The daily timeframe chart shows that the Internet Computer price has crashed in the past few months, moving from a high of $9.8 in November last year to the current $2.5. A closer look shows that the coin has formed a giant double-bottom pattern at $2.071 and a neckline at $9.816.
The two lines of the Percentage Price Oscillator (PPO) have formed a bullish crossover pattern, while the Relative Strength Index (RSI) has rebounded from the oversold level of 30 to the current 40.
The ICP price has also formed a falling wedge pattern, suggesting further gains, potentially to the key resistance level at $5, which is 100% above the current level. A drop below the double-bottom level at $2.07 will invalidate the bullish outlook.
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