ICP price jumped sharply this week as the crypto market rallied and as the network introduced new ways to burn the token and boost its utility. Internet Computer jumped to a high of $2.574, its highest level in two weeks. It has soared by over 23% from its lowest level this month.
Why the ICP Price is Rising
Internet Computer token bounced back this week, thanks to several key catalysts. For example, data shows that it has the most developer activity in the crypto industry. Its daily commits have jumped in the past few months and are beating other networks like Ethereum and Solana.
ICP price also soared amid ongoing token reductions on exchanges. Data compiled by IC Terminal shows that the number of ICP tokens in exchanges dropped from over 62.93 million in January to the current 60.4 million. Falling tokens in exchanges is a sign that investors are accumulating.
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Most notably, whales have continued to accumulate the token, a sign that demand continues rising. The number of whales has risen to 3,535, up sharply from the year-to-date low of 3,469. It has soared from 3,388 in the same period last year.
These whales jumped to over 87.14 million tokens, up from over 79.34 million in the same period last year. Humpback investors, who hold over 100k tokens, have boosted their tokens to over 413 million from the November low of 405 million.
Internet Computer’s network has continued to grow over the past few months, with more developers joining the economy. The most notable of them is Caffeine, an AI platform enabling users to build websites and apps. Data shows that the network has accumulated millions of users from around the world.
Another notable development is Liquidium, a network that enables users to borrow and lend assets across various chains, including popular networks like Ethereum and Solana.
The ICP price rose after the recent launch of Mission 70, which aims to reduce its inflation by 70% over time. This cut will be based on supply-side measures and demand growth. For example, in the supply side, it will increase the price of replicated subnet memory by 2.5x.
Internet Computer Price Technical Analysis
The daily timeframe chart shows that the ICP price bottomed at $1.99 this month and has since bounced back to $2.46 as the crypto market has rallied. The coin formed a double-bottom pattern, which often leads to more upside over time.
The Relative Strength Index (RSI) has jumped from the oversold level of 24 in February to the current 49 and is pointing upwards. Similarly, the Stochastic Oscillator has moved closer to the overbought level.
Therefore, the most likely scenario is where the coin remains in a tight range in the coming days. The outlook is bullish as long as it remains above the key support level at $1.99. If this happens, the coin may rebound to the psychological $3 level. A break below the key support level at $1.99 will signal further downside.
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