ICP price recovers as Internet Computer token burn accelerates
Internet Computer token rose for the third consecutive day as data showed an intensified burn cycle for the token.
Internet Computer (ICP) token climbed to an intraday high of $12, significantly higher than last month’s low of $8.83.
A likely reason for the surge is the latest data showing that the ICP burn cycle continues to rise, signaling the token’s value to developers and users. The cycle burn rate has jumped by over 8,800% on an annual basis.
According to the dashboard, the cycle burn rate now stands at over 849 billion cycles, surpassing the 90-day average of 512 billion. This indicates that the network is performing well and that the number of ICP tokens in circulation is not expanding rapidly. As shown below, the burn rate has been steadily rising over the past few months.
Further data shows that the number of canisters, or smart contracts, in the Internet Computer protocol has reached a record high of 879,670. This is a significant increase from 374,000 during the same period last year.
However, the growth of Internet Computer’s ecosystem has stalled recently. According to DeFi Llama, the network has only 11 decentralized finance apps, with a total value locked of just over $52 million. This makes it much smaller than other popular chains like Base and Sui.
Similarly, Chain-Key Bitcoin, a digital twin of Bitcoin on the Internet Computer, is struggling to gain traction. ckBTC’s market cap stands at $25.7 million, down from last year’s peak of over $75 million, indicating waning interest.
ICP price analysis
The daily chart shows that the Internet Computer token has bounced back after hitting a low of $8.83 in December. It has broken above the crucial resistance level at $10.97, the highest swing point from July last year.
ICP has also moved above the 50-day and 200-day Exponential Moving Averages, suggesting that bulls are gaining momentum. The token is now hovering around the 50% Fibonacci Retracement level and slightly above the lower boundary of the Murrey Math Lines trading range.
Most notably, ICP has broken through the key resistance level at $11.60, which was the neckline of a double-bottom pattern at $9.40. Therefore, the token will likely continue rising as bulls target the next major resistance at $15.58, representing a potential 30% increase from the current price.
