- Despite the price increase, bearish sentiment surrounding ICP dominated the market.
- Derivatives metrics looked bullish, but several indicators showed otherwise.
Internet computer [ICP] has shown brilliant performance in the recent past, increasing its market capitalization. Its recent price surge made it the 16th largest cryptocurrency by market capitalization.
Given ICP’s growth rate, should investors expect ICP to enter the top 10 soon?
A look at ICP’s performance
2024 started with a bull rally for ICP as the price rose significantly. According to CoinMarketCapICP has risen more than 72% in the last seven days.
In the last 24 hours alone, its value has increased by 20%. At the time of writing, ICP was trading at $15.31 with a market cap of over $6.9 billion.
The good news is that the price increase was accompanied by a 100% increase in trading volume, which is generally a typical bull signal.
Due to the massive price increase, social dominance peaked recently as expectations of the token increased. Price volatility 1w also shot up.
However, despite the increase in value, bearish sentiment around the token rose, as evidenced by the dip in weighted sentiment. Development activity around the blockchain has also fallen over the past week.
Source: Santiment
Will ICP continue its bull rally?
Whereas ICPFollowing the stunning performance of the past week, AMBCrypto analyzed whether the token would maintain its bull rally in the following days.
Our analysis of Santiment’s data showed that open interest in Internet computers increased along with their price. An increase in Open Interest increases the chance that the current market trend will continue.
Source: Santiment
The Binance Funding Rate was also in the green, meaning derivatives investors were actively buying ICP at a higher price at the time of writing. However, CryptoQuant’s facts gave a red signal.
Interestingly, Internet Computer’s Relative Strength Index (RSI) was in overbought territory at the time of writing. This could increase selling pressure on ICP and thus end the bull rally.
More bearish signals were revealed when AMBCrypto checked ICP‘s daily chart via TradingView, which showed that the price had reached the upper limit of the Bollinger Bands.
How many Worth 1,10,100 ICPs today?
The Chaikin Money Flow (CMF) registered a downward trend and fell below the neutral line.
Nevertheless, InternetComputer’s MACD showed a bullish edge on the market, while On-Balance Volume (OBV) remained high.
Source: TradingView