Internet Computer (ICP) token soars over 50% in just five days into the new year—what’s next?

Internet Computer Protocol (ICP) token kicked off 2022 with a bang; what's next?
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Key Takeaways:

  • DFinity Foundation, the company behind Internet Computer, asserted high hopes for ICP in 2022, based on growing blockchain development.
  • ICP gained 50% in a week, but threatened to wipe out the gains if it doesn’t break out of the 2021 setup.

YEREVAN (CoinChapter.com) – Internet Computer Protocol forayed 2022 with a 50% uptrend. Its ICP token price traded at $35.8 in the Wednesday session, partially thanks to the developments on the platform. As the Protocol reported in late December, the community voted on and adopted 25 proposals for “Future Crypto Innovation.”

One of the most notable proposals on the list was the Ethereum bridge.  The latter allows ERC-20 tokens to existing natively on Dfinity’s network. The Terabethia bridge also enables cross-chain contract communication and operates regardless of the parties’ consensus mechanisms.

Moreover, DFinity Foundation reported a growing developer activity. Canister smart contracts hit 16,500, a “significant milestone” for the Protocol.

Also read: Dfinity, developers of ICP launch ‘Terabethia’ as coin set for record lows.

The Foundation also pointed out ICP’s eco-friendly nature and foresaw a fruitful year for Internet Computer.

Ecological projects are becoming more and more active and rich. This year must be the year of ICP

commented DFinity.

The robust network improvements and the heightened interest in Web 3.0 projects resulted in Internet Computer topping its market cap with another billion dollars. The latter went from $5.5 billion on Jan 3 to $6.5 billion on Jan 4 and approached $7 billion in the following session.

Also read: NFT comes to television through Samsung TV integration.

While ICP’s fundamentals look strong enough to continue the rally, the technicals flash conflicting signs.

ICP token price chart

Internet Computer got off on a rocky start in 2021. ICP first changed hands at over $500, due to substantial seed funding. However, the token value gradually declined throughout the year. DFinity aims to rekindle the interest towards ICP in 2022, and the first week of the year granted the token a 50% advance.

However, ICP still traded within the Descending Channel that has proved relevant since Aug 2021. It consists of two parallel trendlines that drive the price action down. Despite the Channel’s inutility in determining the future bias, the setup is instrumental for short-term prognosis.

Internet Computer Protocol ICP token price chart
Internet Computer Protocol ICP token price chart. Source: ICPUSDT on TradingView.com

Also read: Ethereum (ETH) price headed for $5K while flashing a bearish setup—what’s ahead?

Thus, if ICP doesn’t break out of the Channel’s resistance in the upcoming sessions, it could wipe out the weekly gains, drop back to the setup’s support, and traded as low as $20.0.

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ICP token, Internet Computer (ICP) token soars over 50% in just five days into the new year—what’s next?

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