A decentralized substitute to centralized internet cloud providers
Internet Computer (ICP) is a network of protocols designed to allow independent data centers worldwide to collaborate and offer a decentralized alternative to traditional centralized cloud providers. ICP enables the operation of Web3 services entirely on-chain, serving as the main protocol for developers to create and users to engage with fully decentralized applications.
The modern internet is highly centralized. The goal of ICP is to create a new decentralized internet, where independent data centers around the globe collaborate to provide an alternative to cloud services from companies like Amazon Web Services and Google Cloud, which currently dominate the internet infrastructure.
ICP developers assert that their approach has distinct advantages over centralized services. By using open standards, they avoid conflicts of interest inherent in centralized providers that also compete with their own services. Moreover, ICP aims to provide a fundamental alternative by empowering developers to build, host, and deploy applications in a decentralized manner, making it easier for developers to deploy websites directly on the public internet.
The ICP token serves several functions: governance (enabling token holders to vote on network decisions), rewarding participants for their contributions, and covering transaction fees. ICP can be seen as a way to transform cryptocurrency into computing power—the network sets fees based on the computational requirements of a developer’s project. Once the fee is paid, the website operates on the public internet.
Participation in Internet Computer may demand more advanced hardware
Many crypto analysts believe ICP has a bright future, but engaging with the Internet Computer may require more robust hardware than typical blockchain projects. This could pose a challenge as it may hinder decentralization by limiting participation to larger players. If the hardware requirements are too steep, only major players may have the capacity to build data centers and actively participate.
Given these concerns, potential investors must exercise caution when navigating the volatile cryptocurrency market. Comprehensive research and assessing one’s risk tolerance are essential steps before committing to any investments in this space. The volatile nature of cryptocurrency could lead to quick sell-offs if adverse news emerges, making ICP an unpredictable and risky investment.
ICP technical analysis
ICP has risen from $9.52 to $16.99 since January 23, 2024, with the current price at $14.12. Despite the recent correction, bulls still have control over price movements. As long as the price remains above the trendline (shown in the chart below), ICP is considered to be in the “BUY-ZONE”.
Key support & resistance levels for ICP
The chart (from August 2023) highlights key support and resistance levels that could aid traders in predicting price movements. According to technical analysis, bulls remain in control. If the price climbs above $16 again, the next resistance target is at $18. The crucial support level is at $13; if this breaks, it signals a potential “SELL” move, opening the path to $12. A drop below $12, which also represents strong support, could push the price closer to $10.
Factors that support an increase in ICP price
The trading volume for ICP has surged in recent weeks, indicating increased interest. One of the key factors driving ICP’s price surge is its correlation with Bitcoin’s growth, as observed with the entire cryptocurrency market. If Bitcoin surges above the $70,000 resistance again, ICP could follow suit and climb higher. For bulls to maintain control, a price above $16 would be beneficial. The fundamentals of ICP are closely tied to the broader cryptocurrency market, and if Bitcoin breaks resistance, ICP could see higher price levels.
Factors suggesting a potential decline in ICP price
ICP’s decline could be influenced by a wide array of factors, including market sentiment, regulatory developments, technological advancements, macroeconomic trends, and more. ICP is highly volatile and risky, requiring investors to be cautious. The support level for ICP stands at $13, and if this level is breached, the next key support is at $12. ICP’s price is also heavily correlated with Bitcoin, and if Bitcoin falls below the $65,000 mark, it could negatively impact ICP’s price.
Uvidi analitičara i stručnjaka
ICP has shown a strong correlation with Bitcoin and the wider cryptocurrency market. Since January 23, the cryptocurrency has surged more than 40%. However, analysts stress that ICP is a highly risky investment, with the potential for significant price fluctuations. Investors should conduct in-depth research, understand the risks, and only invest what they can afford to lose.
In the coming weeks, ICP’s price will be influenced by the overall cryptocurrency market situation, concerns about a potential economic downturn, global tensions, and the monetary policies of central banks. Fears of a recession and policy changes from major central banks will continue to affect the cryptocurrency market. Analysts recommend a defensive investment approach, noting that if Bitcoin drops below $65,000, it could trigger a larger sell-off, potentially challenging ICP’s ability to maintain its current price levels.
Odricanje od odgovornosti: Cryptocurrencies are highly volatile and unsuitable for all investors. Never invest money that you cannot afford to lose. The information provided on this site is for educational purposes and should not be considered as financial or investment advice.
