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Internet Computer (ICP) Analysis: Steady Growth Ahead

3 mins
Updated by Ryan James
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In Brief

  • ICP is consolidating between the 200-day EMA and 100-day EMA, interacting with the Ichimoku Cloud baseline as mid-term resistance.
  • Increasing number of Internet Identities on the ICP network indicates growing adoption and usage of its services and applications.
  • Stable and gradually declining power consumption trends present attractive features for ESG-focused investors.
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Amid the evolving landscape of blockchain technology, Internet Computer (ICP) stands out as a formidable player, showcasing remarkable growth in user adoption and impressive strides in energy efficiency.

As market dynamics shift, ICP’s potential for significant gains becomes evident.

Internet Computer (ICP) Technical Outlook

Analyzing the daily price action of ICP reveals that the price is still consolidating within a visible range.

ICP continues to trade between the 200-day EMA as support and the 100-day EMA as resistance. Within this range, the price also interacts with the red baseline of the Ichimoku Cloud, which serves as mid-term resistance.

ICP Price Analysis. Source: TradingView
ICP Price Analysis. Source: TradingView

Should the price break above this baseline, it could potentially reach the 100-day EMA as its next target. A breakout above the 100-day EMA would likely propel the price into the Ichimoku Cloud. A critical technical structure frequently used by algorithmic traders to position their trades.

Read More: Internet Computer (ICP) Coin Explainer for Beginners

Entering the cloud could signal the end of the descending triangle pattern. With the possibility of a bull run occurring as the price exits the Ichimoku Cloud.

ICP’s Public Blockchain and Increasing User Adoption

ICP creates a public blockchain network where anyone can deploy software and store data, eliminating the need to rely on specific companies like Google or Amazon for these services.

Programs called smart contracts run on the ICP network, automating tasks and agreements similarly to other blockchains. Many investors are appealing to the idea of a decentralized internet controlled by users, and ICP could potentially revolutionize how we use the internet.

Internet identities in the Internet Computer (ICP) are not traditional addresses but cryptographic identities used for authentication and authorization. These identities enable users to interact with applications on the Internet Computer network securely.

The graph below shows a steady upward trend in the number of Internet Identities, indicating increasing adoption of the Internet Computer platform. More users are creating identities, likely indicating that more people are using services and applications on ICP.

The number of internet identities has steadily increased over the observed period. The average daily growth rate is approximately 2,500 identities per day, and the overall percentage growth over the 6-day period is around 0.60%.

ICP Internet Identities. Source: Internet Computer
ICP Internet Identities. Source: Internet Computer

The power consumption graph of the Internet Computer network shows power usage measured in kilowatts (kW), with current consumption at 381.409 kW. The graph reveals fluctuations in power usage, with values ranging approximately between 376 kW and 388 kW.

The overall power consumption remains fairly steady with minor fluctuations, indicating a relatively stable operational demand.

A noticeable gradual decline in power consumption towards the end of the observed period suggests either a reduction in network activity or an improvement in energy efficiency.

These stable and gradually declining power consumption trends present attractive features for investors focused on Environmental, Social, and Governance (ESG) criteria and sustainable investing.

ICP Power Consumption. Source: Internet Computer
ICP Power Consumption. Source: Internet Computer

Canisters Analysis: Advanced Smart Contracts

Canisters are a fundamental component of the Internet Computer (ICP) ecosystem. They are the equivalent of smart contracts on other blockchain platforms but are more advanced in their capabilities.

A canister can store data, process transactions, and execute code, acting as autonomous software units encapsulating both state (data) and behavior (functions).

Read More: Internet Computer (ICP) Price Prediction 2023/2025/2030

Canisters Count. Source: Internet Computer
Canisters Count. Source: Internet Computer

The chart indicates a consistent rise in the number of canisters, increasing from 507,000 in late May to nearly 510,000 at present. This growth reflects the expanding adoption and deployment of dApps and smart contracts on the ICP network.

Strategic Recommendations

Increasing number of Internet Identities suggests growing adoption and usage of ICP’s services and applications.

Stable and gradually declining power consumption trends are favorable for ESG-focused investors.

Monitor the price action closely. Consider a bullish stance if ICP breaks above the 100-day EMA and enters the Ichimoku Cloud. Until then, remain neutral as the price remains within a consolidated range.

The price could turn bearish if it successfully breaks below the 200-day EMA.

In the event of a sustained crypto bull market led by Bitcoin reaching a cycle high of $100,000 to $150,000 or higher, ICP is likely to experience significant upward momentum, potentially reaching the $50 – $60 range.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Adam Mourad
Adam, 23, is a full-time on-chain analyst and part-time trader in the Web3 space. He is the founder and CEO of 0nchained, an on-chain data reporting service. Adam started his journey with CryptoQuant, where he still works as an analyst. Over the past year, he has developed over 30 indicators and written more than 120 analyses. His passions include data and analytics, cryptocurrency, and supercars, particularly red Ferraris and yellow Porsche GT3s. His professional achievements are...