Internet Computer's ICP token has declined 4.3% over the past 24 hours to $4.01. Despite the short-term pullback, ICP still shows some signs of technical strength.
Trading Volume Holds Up
Despite the 4.3% price drop, ICP's 24-hour trading volume reached $23.18 million. This level of liquidity indicates there is still interest in trading ICP across exchanges.
Market Cap Remains Intact
With a market capitalization of $1.76 billion, ICP remains the 46th largest cryptocurrency. Its market dominance sits around 0.14%, largely unchanged over the past month. This shows ICP maintaining its relative market strength.
Monitoring Potential Support at $4
Technically, ICP has found support around $4 multiple times over the past couple months. Now with this pullback, it will be important to see if $4 continues acting as support. If so, this could signal a bottom.
Longer Term Technicals Still Bearish
Despite holding support at $4, ICP remains in a broader downtrend, having declined 30.43% over the past 6 months. The longer term technicals remain bearish, even if $4 prompts a bounce.
While ICP's price has dipped 4.3% in the past day, key indicators like trading volume and market cap stability point to continued technical strength. However, the longer-term downtrend remains intact, despite potential support at $4.
Should You Buy the Dip on Internet Computer?
With ICP down 4.3% in the past 24 hours, some investors may see this as an opportunity to buy the dip. Dollar cost averaging can make sense long-term. However, considering the broader downtrend, traders may want to wait for a trend reversal.
If the $4 support level holds strong and ICP forms a clear higher low, that would signal the downtrend is potentially ending. Additionally, the RSI hitting oversold levels could foreshadow a bottom. Until bullish signs confirm, caution may be prudent.
Is Internet Computer a Good Long-Term Investment?
For investors with a multi-year time horizon, Internet Computer remains an intriguing blockchain project to gain exposure to. As a decentralized infrastructure aiming to reinvent the internet, ICP has disruptive potential if it can gain adoption.
Despite its recent struggles, ICP still ranks among the top 50 cryptocurrencies by market cap. It has strong backing from developers and VC investors. If Internet Computer can deliver on its ambitious vision long-term, ICP could provide strong returns from current levels. However, it is higher risk.