- ICP price has made a bearish breakout in the past few days.
- This performance was in line with other cryptocurrencies.
- Internet Computer has struggled to gain more dApps in its ecosystem.
Internet Computer’s ICP has not been left behind in the ongoing cryptocurrency sell-off. ICP token was trading at $3.50 on Wednesday, having crashed by more than 58% from its highest level this year. It is now hovering at the lowest level since December last year.
Internet Computer adoption is lagging
Internet Computer is one of the best players in the blockchain industry because of what it promises. It is a significantly different platform than other popular blockchains like Ethereum, Solana, and Avalanche.
Internet Computer was launched by Dfinity to revolutionize the computing industry and disrupt the centralized ecosystems. It is a software platform that makes it possible for developers to build quality applications in all industries.
In addition to this, it has enabled smart contracts, making it possible for users to secure their dApps easily. One of the best use cases of Internet Computer is its website, which is built using its technology.
Internet Computer is used by many developers who have build dApps across most industries like social media, crowdfunding, decentralized trading, and gaming. Some of the most notable apps created in its ecosystem are Cosmicrafts (10k users), Funded (83k users), DSCVR (200k users), Distrikt, and OpenChat among others.
While Internet Computer has grown, it has struggled to have a real breakout star in its ecosystem. For example, a chain like Ethereum is known for its breakout stars like AAVE, Compound, and Uniswap.
After researching most of Internet Computer’s dApps, I believe that they are all niche products that could find it difficult to go mainstream. For example, Distrikt recently reached 1 million posts and 540k comments. Smaller centralized platforms like Truth and Rumble have millions of users and posts every day.
Like other cryptocurrencies, ICP price has struggled as demand for the token from investors has dried up. Recent data shows that the volume of cryptocurrencies traded in exchanges dropped to a multi-month low in July.
ICP price prediction
The daily chart shows that the ICP crypto price formed a parallel channel at $4.47 and $3.94 between June and August. This price action mirrored that of Bitcoin. The upper part of that channel coincided with the lowest level on March 10th. This price was also the neckline of a double-top pattern that happened in February and April.
ICP price made a bearish breakout last week and moved to a low of $3.20. It is now below the 50-day and 100-day moving averages. Therefore, the Internet Computer price will likely continue falling as sellers target the next key support at $3 followed by $2.50.
