Internet Computer (ICP) Plunges by 11% Weekly: Further Collapse or Rebound Ahead?

The list of altcoins that have posted substantial declines over the past week is quite long, and their poor performance coincides with the broader market decline that occurred a few days ago.

Internet Computer (ICP) is the worst performer (at least from the top 100 club), with its price slipping by 10% within that period. The question now is whether a further plunge is knocking on the door.

‘Dead Coin Walking’

ICP currently trades at approximately $3.26 (per CoinGecko data), a substantial decrease from the local peak of almost $10 recorded towards the end of last year. Its downtrend has caught the eye of numerous analysts, some of whom believe the bulls are unlikely to regain control anytime soon.

X user Alisa noted the significant decline in recent months, arguing that ICP’s chart indicates “exit liquidity.” “Massive November pump, then straight off a cliff. Classic rug vibes,” they stated.

The market observer claimed that Internet Computer has always had a “sketchy” marketing, adding that the valuation has finally matched the hype – “garbage.”

Alisa questioned how the asset’s current market capitalization is approximately $1.8 billion, characterizing it as “dead coin walking” and warning investors not to catch this “falling knife.”

More Crypto Online also sounds quite pessimistic. The analyst thinks the current structure is bearish due to falling below certain important price levels, claiming that a plunge to multi-month lows is possible:

“From the recent support area, price has again produced only a 3-wave rally into the long-standing resistance zone between $4.48 and $7.52. This resistance has held repeatedly, while support levels continue to break, which increases the probability of further downside. In bearish environments, this pattern typically keeps pressure to the downside intact. As a result, a move toward lower levels, potentially even below the October 10th low near $1.51, cannot be ruled out.”

The Bullish Case

On the other hand, many other analysts continue to predict that ICP could be on the verge of a major rally. X user Nehal envisioned a 60% increase in the short term, seeing the price trading above $5 sometime in February.

Prior to that, Bitcoinsensus suggested that ICP has been coiling inside a falling wedge pattern. According to the X user, the price has been compressing within a multi-year wedge, while breaking the formation to the upside could lead to a price explosion above $20.

ICP’s recent exchange netflow supports the optimistic forecasts. Over the past several weeks, outflows have dominated inflows, meaning that investors have shifted from centralized platforms to self-custody methods. This, in turn, reduces the immediate selling pressure.