- Internet Computer’s token has been in a tight range in the past few days.
- There are concerns about Web3 growth as Disney and Meta pull the plug.
- Internet Computer’s revenue and fees in the ecosystem have dropped.
Internet Computer (ICP) token has been in a consolidation phase in the past few days even as cryptocurrencies jumped. ICP was trading at $5 on Friday, which is about 9% above the lowest point this week. It remains about 38.2% below the highest level this year even as Bitcoin is hovering close to the highest point since June.
Web3 metrics wane
Internet Computer has struggled in the past few weeks as concerns about the Web3 industry remains on edge. Earlier this month, Meta Platforms, the parent of Facebook and Instagram, announced that it was ending its Non-Fungible Token (NFT) products. This was a major announcement because Meta is one of the biggest players in the industry.
And this week, it was reported that Disney was ending its metaverse projects amid low demand. This was a major announcement because Disney has some of the top products that would fit in the metaverse like its theme parks and cartoons.
Read more: How to buy Internet Computer.
A key challenge for Internet Computer is that its ecosystem is not active at all. Data compiled by TokenTerminal shows that the fees in the ecosystem has dropped sharply in the past few months. On March 28, the total fees collected in the ecosystem was just $301. As shown below, fees collected in the ecosystem has been negligible.
The number of active developers in Internet Computer has not been growing. There were just 126 active developers on March 29th. In the past 30 days, the number of active developers dropped by 0.9%.
ICP price has also struggled as the overall ecosystem remained under pressure. A look at its ecosystem shows that its dApps are not showing a lot of growth. DSCVR and Distrikt have about 175k and 110k users, respectively. These numbers have remained like this for a while.
A key challenge is that Web2 platforms like Twitter, TikTok, and Google Drive are doing just fine and are incredibly popular.
ICP price prediction
The 4H chart shows that the ICP crypto price has been in a tight range in the past few days. It has moved to the 50-period moving average. Most importantly, the coin has formed a symmetrical triangle pattern, which is shown in blue. The price is slightly above the key support at $4.97, which was the lowest level on February 10.
Therefore, there is a likelihood that Internet Computer will likely remain in a tight range in the coming days and then make a breakout in either direction. If this happens, the key reference levels to watch will be at $4.62 and $5.50.
