Internet Computer (ICP) Faces 32% Drop This Week: Should Investors Act Now?

Internet Computer (ICP) experienced a significant increase in value earlier this month, with the market participants initially optimistic about its trends. In fact, its valuation surged to nearly $9.50 on November 8, which was the highest level recorded since January of this year, temporarily pushing its market capitalization above $5 billion.

However, a recent downturn in the broader cryptocurrency market has led to a sharp decline, with ICP falling by about 32% and currently trading below $5.

What’s Next?

This sharp fall raises concerns among investors, sparking debate on whether it’s a chance to accumulate at lower prices or an initial sign of a more considerable drop ahead.

ICP Price, Source: CoinGecko

Despite the decrease, analysts maintain a cautious optimism regarding ICP’s future prospects. One prominent user, WIZZ on X, remarked that the token might be nearing a bottoming area and forecasted a potential rebound to $20. Rushi, another analyst, expressed even stronger sentiments, suggesting that if Bitcoin (BTC) surges to $220,000 in the next 45 days, it could trigger a significant rally for altcoins, including ICP aiming for $100.

As of now, Bitcoin is trading at slightly over $95,000, a 10% drop from the previous week, which puts the feasibility of such forecasts in question.

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This Metric Flashes the Buy Signal

The Relative Strength Index (RSI) for ICP has fallen below 30, indicating that the asset may be oversold, and a rebound might be on the horizon. The RSI is vital for gauging potential price reversals based on recent movements.