With a market cap of more than $1 billion, Internet Computer is among the top 50 cryptocurrencies CoinGecko. Although the crypto market certainly is bullish On the token, the positive sentiment on the crypto over the past few days has not been reflected on the charts.
Corresponding CoinGecko, the token is down 5% on the daily timescale. However, the bi-weekly time scale shows a 12% increase.
Upward trend, but why is the internet computer down?
DFinitythe company that launched Internet Computers recently integrated Bitcoin to add smart contracts to the top cryptocurrency.
According to the Santiment Insight prepared by SanTrends, ICP is the top 5 right behind Ethereum in development activity. InfinitySwap, the ICP blockchain’s automated market maker (AMM) and staking platform, has also contributed to the surge in development activity integrated Ethereum, which ensures low fees compared to the top altcoin.
Image: Crypto News Flash
However, this strong upward movement in development was supported by a strong drip in TVL, high profile crashes in the crypto space and economic headwind produced the perfect storm for ICP to crash just a day before the start of 2023.
Chart: DefiLlama
Security has increased for ICPs, but not for investors
ICP’s on-chain security has been increased through integration with BTC. Since 2022 very notorious Given the amount of stolen digital assets, this security boost is greatly appreciated by the community.
However, on-chain security does not guarantee returns for internet computer investors and traders. Historical, ICP follows both Ethereum and Bitcoin in price action. If ETH and BTC suffer from internal or external factors in the crypto industry, it would affect the price of altcoins like Internet Computer.
This year’s start for ETH and BTC has been shaky at best. While the BTC community celebrates Genesis block tag With fearful support at $16,515, ICP still has a long way to go in terms of bullish prices.
However with analyst With metrics that could set a precedent for a bull run, ICP could have near-term bullish momentum above the $4.096 price resistance with support at $3.840.
ICP total market cap at $1.1 billion on the daily chart | Chart: TradingView.com
Bitcoin and Ethereum trudge sideways as both the crypto market and the traditional financial market await Federal Open Market Committee (FOMC) meeting minutes. which will provide possible signals for further rate hikes.
Not to mention the current FUD surrounding the whole thing Genesis DCG debacle and the deteriorating situation of Grayscale’s situation as both his Bitcoin Trust Fund and be Ethereum Trust Fund depreciate quickly.
Meanwhile, ICP investors and traders should hold off any major decision until the conclusion of the FOMC meeting as it would indicate either improving or deteriorating economic conditions.
-Featured Image: Yahoo Finance
