What to know:
- The ICP price is testing a crucial long-term support level that could decide its next trend.
- Holding support could improve the ICP price outlook, while a breakdown may increase selling pressure.
- Internet Computer recorded its highest daily transaction activity of the month.
Internet Computer (ICP) is testing a crucial long-term support level that could shape its next market direction. Analysts warn that losing this support may trigger further downside, while rising network activity highlights growing adoption of decentralized applications, AI services, and Web3 infrastructure.
At the time of writing, ICP is trading at $2.04 with a 24-hour trading volume of $35.04 million and a market capitalization of $1.13 billion. Despite the 4% loss over the last 24 hours, the ICP price structure and network growth point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: Solana Leaves ICP and BNB Behind as Powerful Buy Signal Emerges
ICP Price Faces Make-or-Break Moment at $2
According to the crypto analyst Crypto Patel, Internet Computer (ICP) is trading above its crucial $2 high-timeframe (HTF) support, a level analysts consider vital after the token lost nearly 99.5% of its value from its all-time high. Holding this trendline has so far prevented a deeper breakdown, making the current price zone a key test for long-term market sentiment and investor confidence.
Source: Crypto Patel’s X Post
However, technical traders are concerned that a definitive move below the $2 support level will only strengthen the bears’ case and lead to further price declines. For the HTF, $1 is the next key support level, although $0.50 is still the key level for the bears if they push harder. This is a do-or-die situation for ICP.
Internet Computer Reaches 132.9M Daily Transactions
The data from Chainspect further highlighted that the daily transactions by the DFINITY Foundation’s ICP surged to 132.9 million, recording a new all-time high of the month.
The record high represents an increase in the utilization of the Internet Computer’s network due to the growing popularity of decentralized applications, blockchain, and artificial intelligence-based networks using the protocol’s infrastructure.
Source: Chainspect’s X Post
The amount of transactions is analogous to the total number of people in New York City carrying out around 16 transactions each using blockchain in one day. This accomplishment further cements the status of Internet Computer as a serverless blockchain that can be used to host applications and artificial intelligence services that require highly scalable and always-on infrastructure.
What Happens Next?
The subsequent step for ICP depends on whether buyers are able to hold its vital support level while the adoption rate of the network continues to increase. This can help to boost the confidence of investors and bring about a reversal. Failure to hold this vital support level can create new selling pressure, leading to increased volatility.
Also Read: ICP Price Targets $8.9 Rally as Network Activity Hits 1,459 TPS Milestone
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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