Internet Computer (ICP) Continues Upward Trajectory With 16% Rally

Internet Computer (ICP) continues to impress investors as it captures gains despite the market being down a few percent today. According to the latest market data, the token is up 16% since last week, a confirmation for some that ICP will continue to trend upward in the coming days. 

Despite the market’s undeniable bullishness, a reversal might be forming in the coming days, threatening this month’s gains. However, with investors anticipating ‘Uptober’, there might still be room for investors to squeeze in some gains as the month ends. 

As of writing, ICP’s upward trajectory is threatened by a rejection by the $9.90 resistance level which might force the token well below $9.23 if the sentiment reversal continues to strengthen. Considering that the $9.23 support level is quite weak, the bearish thesis holds a lot of weight on the portfolios of investors. 

ICP’s current trajectory started at the start of August and continued to mature and develop over the month. Although it seems that this drive will be continuous, experiencing only a couple of dips here and there, the current rejection coupled with the market’s dip today, the token might be on the path of losses in the coming days. 

The relative strength index (RSI) is also signaling that ICP bulls will hit their threshold in the coming days, which will lead to the token suffering a pullback.

If the token does not stabilize at its current price level, ICP bears will have the momentum to break through the $9.23 support level with $8.09 as the target. However, if the token stabilizes it has the potential to achieve a breakthrough on the $9.64 resistance with the target set at $11.41.

Token Terminal, a crypto market data aggregate, recently shared that Internet Computer network activity over the month has surged, leading to a surge in fees. This led to the platform beating other L1s in the category as it reached an over 5,000% increase in the past 30 days.

BREAKING: Internet Computer has generated more fees than @Optimism, @arbitrum, @avax, and @0xPolygon in the past 30 days. pic.twitter.com/lqaUoA5cc9

— Token Terminal (@tokenterminal) September 24, 2024

According to the platform, the jump in activity is due to bob.fun, a blockchain built on top of ICP that creates a secure record book while using the underlying platform for security. 

In a recent discussion at the Token2049 in Singapore, Dominic Williams, the Founder and Chief Scientist of the DFINITY foundation, talked about how Compute is the cornerstone of modern society. 

“When you’re running software or a system on the ICP network, it never crashes or stops running,” said Williams. 

With the use case for ICP as a security and compute layer, network activity on the platform may continue to trend upward in the coming months. 

Featured image from Pexels, chart from TradingView