‘Ethereum killer’ Internet Computer’s bullish rally exhausts midway

After surprising market watchers by outperforming Bitcoin and Ether last week, ICP, the native coin of Internet Computer, is nosediving again
Image by Hans Braxmeier from Pixabay

Key takeaways

  • Internet Computer Protocol’s home coin, the ICP nosedives again
  • Last week ICP hit a low note, going as far down as $26.90. However, it soon recovered
  • Selling pressure may be behind the dump

YEREVAN (CoinChapter.com) — Internet Computer’s hay days seem to be coming to an end. After surprising market watchers by outperforming Bitcoin and Ether last week, ICP is nosediving again.

On July 20, ICP hit an all-time low of $26.90 but then went bullish the next few days registering a growth of over 70%.

However, the tides seem to have turned, as ICP has started losing steam again.

Recommended: Internet Computer Protocol (ICP) price pumps 42% on strong buying pressure and fundamentals

What is the ICP?

ICP is the native token of Internet Computer Protocol, a decentralized computing protocol for software services developed by DFinity. The project made headlines while still in the infant stage. In 2016, it raised more than $120 million, with its list of investors including Andreessen Horowitz (a16z), Polychain Capital, Scalar Capital, CoinFund, Multicoin Capital, Greycroft Partners, among others.

Over two months ago, on May 10, the Internet Computer launched on Coinbase and on multiple cryptocurrency exchanges. With an initial listing at $633, it instantly made headlines.

On the first day of trading on Binance, the price of ICP went as high as $3,093. This price didn’t last long. Just a week later, it fell below $200. Then came the major market crash on 19 May, taking the ICP prices downhill with it.

Recommended: A 40% bullish breakout awaits Internet Computer (ICP) on falling wedge formation

The July ICP surprise 

After taking a beating, along with much of the crypto industry, ICP pulled off a stellar performance this week, leaving market watchers scratching their heads. The parent company of ICP, DFinity, launched a number of decentralised applications on its platform that got the bulls rallying behind it. 

Then came another game-changing news. The internet computer surpassed 100MM blocks on Friday, July 23. The milestone achievement came just in time for the staggering ICP. 

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Selling pressure caused prices of ICP to fall?

One of the major challenges for a staggering coin on its way to recovery is the selling pressure. When a coin that has been underperforming shows signs of recovery and gains lost ground, investors tend to dump their holdings in anticipation of a price drop. This, in return, breaks the momentum and brings the bullish run to a screeching halt.

 

Having shocked the market with a comeback, the ICP token started facing extreme selling pressure, bringing the prices down. 

In the meantime, Dfinity faces a lawsuit filed in California. The suit, filed by Daniel Ocampo, claims the company illegally sold Internet Computer Protocol (ICP) tokens as an unregistered security. 

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