- The price of ICP rose and is expected to reach $14.
- Open Interest rose 87.33%, indicating strength for the upward price action.
Internet computer [ICP] bucked the broader market trend, rising 32.72% in the past 24 hours. According to CoinMarketCap, ICP’s price at the time of writing was $13.44.
The increase was something that AMBCrypto found interesting. This was because it happened at a time when top cryptos like Bitcoin existed [BTC] and ether [ETH] traded sideways.
According to the fundamentals, ICP is not solely dependent on the movement of Bitcoin. Instead, it also has utilities that affect its value.
Examples of these utilities that affect its value include storage of value and staking involving the network nervous system (NNS).
The NNS is the open permissionless system that controls the internet computer blockchain. However, AMBCrypto evaluated the project’s ecosystem and found that no major development has taken place.
Therefore, it was easy to conclude that the price increase was due to increasing interest in the cryptocurrency.
No dependence on BTC
In 2023, ICP was one of the altcoins with a great performance. On a Year-To-Date (YTD) basis, the value rose 234%, outperforming BTC.
As a result, AMBCrypto continued to check the correlation between BTC and ICP.
According to Macroaxis, the 90 days correlation The coefficient between ICP and BTC was 0.77. This reading was considered bad. So assuming you bought ICP and BTC three months ago.
At the time of writing, you would have made 3.49 times more with ICP than with Bitcoin.
Source: Macroaxis
ICP envisions a good start to 2024
Moreover, the 4-hour ICP/USD showed that the cryptocurrency could break the $10 resistance on December 30. On the same day, it faced a new hurdle at $11.30.
But the buying pressure was intense and also caused a turnaround in the zone.
Further review of the chart indicated that ICP was overbought. This was confirmed by the Money Flow Index (MFI), which stood at 94.75. Values of the MFI above 80 indicate that an asset is overbought. Normally this should lead to a reversal.
The Relative Strength Index (RSI) also showed a similar condition with a value of 80.51. With no red candles in sight, ICP could start the new year as the best performing altcoin.
Source: TradingView
In addition, the 24-hour Open interest around ICP increased by 87.33%. Open Interest is the value of the liquidity associated with open contracts surrounding an asset.
Is your portfolio green? View the ICP Profit Calculator
The Open Interest also plays a crucial role in determining price strength and market sentiment. A drop in Open Interest would have invalidated the bullish thesis.
Source: Coinglass
But since the benchmark has risen, it means there is enough strength for the ICP price to continue rising. As it stands now, ICP has the potential to reach $14. But that would only happen if traders don’t decide to take profits along the way.