TL;DR
- ICP is trading at $6.12, a 100% increase in seven days, defying the market correction.
- The key catalyst is the launch of the “Caffeine” AI platform by the DFINITY Foundation.
- Analysts are targeting $12-$15, but the RSI (73) suggests overbought risk.
While the cryptocurrency market is experiencing a painful correction, with Bitcoin and Ethereum posting substantial losses, Internet Computer (ICP) is defying the trend with a spectacular performance. Market data reveals that the asset is currently trading around $6.12, posting an impressive 27% gain in the last 24 hours and an astonishing 100% in the last seven days.
This renewed upward momentum, which began in late October, intensified this week following a key announcement from the DFINITY Foundation, the main contributor behind the Internet Computer blockchain. The foundation launched “Caffeine,” a new artificial intelligence platform designed to allow users to build applications, a catalyst that has captured the market’s attention.
The Internet Computer (ICP) rally has sparked strong optimism among technical analysts. X user “Captain Faibik” argued that the asset has broken a downward trendline with “strong buying volume,” projecting a pump above $12 in the coming months.
On the other hand, there is speculation that breaking above $6 could trigger a further jump to $15. Another analyst, “LSD,” revealed adding ICP to their portfolio, citing that the asset shows “classic signs of volatility compression” after a long bear cycle. According to LSD, a clean weekly reclaim above $6.5 “flips the macro structure bullish” for a major trend reversal.
Short-term Overheating Risk?
Despite the enthusiasm, and although some analysts suggest implausible targets of $50, there are cautionary signals. Currently, ICP is the 46th-largest crypto asset with a $3.2 billion capitalization (a $50 target would require a $23 billion capitalization, close to the top 10).
The key indicator to watch in the short term is the Relative Strength Index (RSI), which measures the speed of price changes. As of press time, ICP’s RSI stands at 73. A reading above 70 traditionally indicates that an asset is in “overbought” territory, suggesting that the Internet Computer (ICP) rally could face a short-term correction before continuing its ascent.
