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Internet Computer Protocol has returned 25% in a week
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Internet Computer powers smart contracts and dapps
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Technical indicators support a surge, but the crypto sentiment remains weak
Internet Computer Protocol ICP/USD has been a top gainer in the last seven days. With a return of more than 25%, the cryptocurrency could be on its way to recovery. Bullish signs are there, although the general crypto sentiment is weak.
Internet Computer prides itself on being an open-source blockchain network. Users can deploy smart contracts and create scalable dapps on the network. ICP, the native token of the platform, allows users to participate in the governance framework.
ICP skyrocketed last year at the height of the crypto boom. It traded at highs above $630 in May 2021 before crashing back. At the current price of $6.5, ICP is a shell of itself. Seemingly, the latest crypto crash has hit ICP more than most cryptocurrencies. The price touched a bottom of around $5 last month. We believe the latest gains are positive for ICP, but investors should remain cautious in the bearish market.
ICP technical analysis as moving averages join a support
Source – TradingView
Technically, ICP is bullish as the price recovers from the $5.0 bottom. The 14-day and 21-day moving averages support the price reaffirming a bullish push. Besides, the MACD line crossed above the moving average in line with the bullish momentum. We believe $5.0 is the level to watch as ICP gains bullish momentum. However, crypto sentiment remains weak. ICP could correct temporarily downwards before resuming the uptrend. The price may reverse at the 14-day or 21-day moving average.
Summary
The Internet Computer Protocol is showing bullish signs. However, crypto sentiment remains weak, and the price could fall back. Monitor price action at the short-term moving average. The reference bottom price for the cryptocurrency is $5.0.