Internet Computer's 1.12% Price Decline to $7.35: Key Insights for August 31, 2023

The price of Internet Computer's ICP token has declined 1.12% over the past 24 hours to $7.35, according to the latest market data. This continues a downward trend for ICP, which has fallen 18.47% over the past month. However, there are some positive signs in the data that could indicate a potential reversal ahead.

Internet Computer currently has a market capitalization of $1.54 billion, putting it within the top 50 cryptocurrencies globally. Trading volume over the past 24 hours totaled $17.42 million, which is considered relatively healthy. Now let's take a closer look at the key metrics:

Short Term Fluctuations Show Signs of Consolidation

Over the past hour, ICP's price rose 0.49% to $7.35. This indicates some stabilization after the recent sell-off. Zooming out to the past 24 hours paints a similar picture - the 1.12% decline was smaller than the volatility witnessed last week. ICP fell 4.03% over the past 7 days. Typically in crypto markets, a period of decreased volatility signifies that a bottom may be close.

The price action since midnight also shows ICP bouncing between support at $7.25 and resistance around $7.50. This narrow 20 cent range demonstrates that sellers are losing momentum. As long as support holds, ICP could be gearing up for its next leg higher.

Month Over Month Shows Drawdown Nearing Completion

The 18.47% decline over the past month is certainly discouraging for ICP holders. However, momentum indicators like the Relative Strength Index (RSI) indicate ICP is oversold at current levels. The RSI recently bounced right around 30, which is usually an area where selling dries up.

Additionally, the magnitude of the monthly drawdown is on par with past cycles in cryptocurrencies. Bitcoin and Ethereum regularly experience pullbacks between 20-30% before continuing their long term uptrends. ICP appears to be following this boom-bust cycle that is common across crypto assets.

The 40.10% loss over the past 6 months may seem brutal, but it could mark the bottom of this bear cycle. Looking at Bitcoin's halving cycles, the middle year usually sees the deepest declines before prices take off the following year. If ICP follows a similar pattern, the current drawdown puts it in prime position for a trend reversal over the next 3-6 months.

Opinion: ICP Poised to Recover to $15 by Mid-2024

Given the oversold conditions across various timeframes, ICP looks poised to bounce back strongly once selling pressure fully exhausts itself. The cryptocurrency market as a whole appears positioned for a trend change, and undervalued large cap coins like ICP should be front runners in the next bull phase.

My price prediction is for ICP to recover back to the $10 level by early 2024. This would represent a 30-40% gain from current prices. As bullish momentum builds throughout next year, ICP has potential to reach a new all-time high around $15 by mid-2024. This reversal will be fueled by renewed retail and institutional interest in high-potential layer 1 blockchain projects.

I expect the road to recovery to be volatile, with 30-50% retracements during bull market corrections along the way. However, the macro backdrop of inflation and geopolitical uncertainty will continue driving assets like Bitcoin and Ethereum higher. As a leading smart contract platform, ICP is poised to benefit from capital rotating out of stagnant legacy assets and into the most innovative blockchain projects.

Will Rising Interest Rates Continue Impacting ICP's Price?

Central banks globally have been raising interest rates aggressively in 2022 to combat high inflation. This has reduced liquidity available for risk assets like cryptocurrency. However, the worst of tightening may be priced in at this point.

As banks telegraph future rate hikes, crypto markets will start pricing in expectations before the actual hikes occur. This should minimize the shock effect we've seen this year as interest rates rapidly spiked. Additionally, inflation shows early signs of peaking which could pave the way for a less hawkish Fed by mid-2023.

While higher rates remain a headwind, the effect should moderate going forward. Meanwhile, ICP has already experienced a major repricing lower this year which can help offset additional impacts. As long as the project continues innovating, rising rates are unlikely to prevent an eventual recovery.

Will DeFi and Dapp Adoption Power Internet Computer Higher?

Decentralized finance (DeFi) and dapp adoption will be key drivers that could propel ICP higher long term. Internet Computer aims to be the gold standard for these next-generation blockchain applications. Its architecture solves issues like scalability and cost faced by networks like Ethereum.

If Internet Computer succeeds in onboarding developers and users to its ecosystem, demand for ICP will surge. The token plays a crucial role in the network's governance and operations. An explosion of activity on Internet Computer will directly translate to higher utility and value of ICP.

However, this is not guaranteed as emerging networks like Solana and Avalanche also aim to dominate DeFi and dapps. Ultimately, real-world usage will determine which platforms see their native tokens appreciate most in the coming years. If Internet Computer can gain an edge, ICP could dramatically outperform the broader crypto market this decade.


In summary, Internet Computer's ICP token remains in a short term downtrend but oversold conditions suggest a bottom may be close. Longer term recovery could see ICP return to $15 by mid-2024 driven by rotation back into high upside cryptos. However, execution risks remain around DeFi/dapp adoption. Ultimately, real-world usage of Internet Computer will determine how high ICP can run during the next bull market.

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