Internet Computer’s (ICP) token price has nosedived hard in the past few weeks as the sentiment in the crypto industry has waned. It peaked at $21 in March and has now crashed to $8, its lowest swing since December last year.
Verified Credentials launch
Internet Computer’s price action reflects its network’s performance as its ecosystem wanes. For example, data shows that the network’s total value locked (TVL) is just $71 million, making it smaller than newer blockchains like Mantra, Sui, Base, and Blast.
On the other hand, ckBTC, a Bitcoin twin on the Internet Computer network created through chain-key cryptography, has over $17 million in assets and is no longer growing since it peaked at $18.2 million earlier this month.
Now, the developers have launched a new solution to improve the ecosystem. On Tuesday, they unveiled Verified Credentials (VR), a walletless tool that solves some of the existing challenges in the Web3 industry.
Verified Credentials is a tool that enables efficient and trustworthy sharing of personal data while maintaining privacy and control on the Web3. It also eliminates bots to solve the challenge of manipulating public discourse in social media.
The concept behind Verified Credentials is relatively simple. It solves the data challenge that platforms like MetaMask have. MetaMask users receive a unique pseudonym identity that lacks important attributes like name, age, and country.
Verified credentials run on the Internet Computer blockchain and will provide these features while ensuring robust security. In a statement, Jan Camenisch, the CTO of Internet Computer’s developer, said:
“Apart from dApps on the Internet Computer, traditional systems can also plug in with Internet Identity and allow users to authenticate with Verifiable Credentials, e.g., proving that they are a real person, that they did KYC, or that they are over 18.”
Read more: How to buy Internet Computer.
Internet Computer price forecast
The ICP price reacted mildly to the Verified Credentials launch as it continued to retreat. The daily chart shows that Internet Computer has crashed hard in the past few weeks. It plunged to a low of $8, its lowest since December.
The ICP token has dropped below the ascending trendline, connecting the lowest swings in December, February, March, and May. Most importantly, the Internet Computer’s price is about to form a death cross chart pattern where the 50-day and 200-day Exponential Moving Averages (EMA) cross each other.
Further adding to the bearish sentiment, the ICP token has formed a head and shoulders pattern on the daily chart, a widely recognized bearish sign in price action analysis.
At the same time, the Relative Strength Index (RSI) has moved to the oversold level of 27. Therefore, the path of the least resistance is that the Internet Computer price is downward as sellers target the critical support at $6.
