ICP Analysis: Can (Dfinity) ICP recover?
The price of ICP has borne the brunt of the bear market. From its spectacular price rise to around $700 the price has tumbled down to around $5 in the advent of the bear market. The current price of ICP is around $ 4.49. Deep dive into this article in order to gain technical insights about ICP.
What we are going to learn?
What is Dfinity?
Dfinity is a decentralized cloud computing network that is designed to provide a secure, reliable, and scalable platform for the development and deployment of decentralized applications (dApps). It is powered by a novel consensus algorithm called Threshold Relay, which is designed to provide fast and secure consensus without the need for a central authority. Dfinity also features a unique blockchain–based governance system that allows users to vote on changes to the network.
Is Dfinity a scam?
No, Dfinity is a legitimate blockchain project. It is an open–source blockchain network that has been designed to provide secure and efficient cloud computing services.
What is ICP?
ICP is the native token of Dfinity. It was curated by a non-profit organization Dfinity Foundation and its primary objective was to restructure the web in a decentralized mechanism. The ICP token allowed various users to curate any kind of website or app in a decentralized format.
The founders have claimed that Internet Computer blockchain project has an innate potential to give stiff competition to the Big Tech organizations because ICP is restructuring the web in its entirety.
In layman terms, ICP can be described as a computer network which has the potentiality to support various versions of the application on the web.
What is price history of ICP?
The price of ICP started dropping from its launch price of $750 in May 2021.
Following this the price kept on falling steeply. ICP tried to regain its price but severely failed in the effort and the price tumbled up to $100 by the third week of May.
Although there was a brief ascent in the prices in September 2021 it couldn’t sustain long enough and the price fell around $24.43.
Since then the price of ICP is following a downward trend with brief periods of ascent followed by a fall.
Due to these fluctuations, ICP has been kicked out of the top 10 cryptocurrencies club.
Apart from that ICP has a total supply of around 488.5 M tokens in the cryptocurrency ecosystem out of which around 268.41 M tokens are currently in circulation.
Currently ICP is trading around 4.37USD, down from 36USD at the beginning of the year.
ICP Price T0day
Today, ICP is trading at:
Does ICP have any utility?
ICP can be the fuel that would power the Satoshi idea of crafting a network which will be powered by Bitcoin.
This would directly give rise to a new range of internet services in the ecosystem. Internet Computer has a range of cryptographic technologies which allows ICP to directly sign transactions for various blockchains.
This specific technology could help ICP create smart contracts which will be hosted on the network provided by ICP but with a native address powered by Bitcoin.
This process would provide these smart contracts hosted on the ICP with a direct integration with Bitcoin. The entire idea sounds completely technical in nature with an innate potential to revolutionize the Internet.
This utility can help ICP reclaim its lost ground and further achieve massive height. ICP has also been termed as a “Ethereum Killer” in the ecosystem.
Although there functions and mechanism are completely different, ICP can easily reiterate its technology and consume a massive market share of such cryptocurrencies.
ICP technical analysis
ICP does not have a robust timeframe in order to determine a sound technical analysis.
However analysis over a limited timeframe of data shows that the currency has been following a downward trend since a long time.
The currency is fluctuating within various short term highs and lows which are being recorded between a support price at $6.67 and a high at $10.
ICP technical analysis suggest it could be very close to its bottom.
However further analysis reveals the fact that this has formed a descending channel for the currency and in order to go for a long term recovery the currency has to break this descending channel.
Roadmap and upcoming events of ICP?
ICP has planned to deploy various major technologies in the upcoming year. However the a major event to look out is on the integration of the Wasm native stable memory on ICP.
Apart from that various new integrations such as Canister Timers which will directly enhance the heartbeat API and the “Composite query” system which will help in calling out other queries are some of the major events which are slated to be deployed in 2023.
ICP: Buy, Sell or Hold in 2023?
According to us, Dfinity is a Hold.
Dfinity is a new cryptocurrency platform that is still in development, so it is difficult to make an informed decision about whether or not to buy, sell, or hold the currency at this time.
It could be a great investment opportunity once it has been fully released and tested, but until then investors should proceed with caution.
Is investing in Dfinity a good idea?
ICP seems to portray a bleak future ahead however there are chances that the coin might ascend to high prices in an instant. There are various projects and ideas being run around ICP.
The organization is claiming to fix various major issues in the current crypto system and the primary issue is centred around direct integration with other cryptos.
ICP plans to fix various traditional problems such as gas fees etc. If such changes are successfully implemented there are chances of a massive recovery for ICP.
The current price of ICP has massively fallen from its launch price while subsequently eroding massive value of the coin but the technology behind the coin is promising. If the ideas portrayed by ICP turn out to be successful the price of coin will massively rise in the markets.
Warning: It is not possible to give a definitive answer as it depends on your individual investment goals and risk appetite. Investing in any asset, especially digital assets such as Dfinity, involves significant risk. Before making any decisions about buying or selling an asset like Dfinity, you should do your own research and consult with a financial advisor if necessary.