The Internet Computer token rose for the third day in a row as data showed an intensified burn cycle for the token.
The Internet Computer (ICP) token hit an intraday high of $12, significantly higher than last month’s low of $8.83.
A likely reason for this increase is the latest data showing that the ICP burn cycle continues to increase, signaling the value of the token to developers and users. The cycle burn rate jumped more than 8,800% on an annual basis.
According to the dashboard, the cycle burn rate now stands at more than 849 billion cycles, surpassing the 90-day average of 512 billion. This indicates that the network is functioning well and the number of ICP tokens in circulation is not increasing rapidly. As shown below, the burn rate has been steadily increasing over the past few months.
Other data shows that the number of cartridges, or smart contracts, in the Internet Computer Protocol reached a record high of 879,670. This is a significant increase from the 374,000 recorded during the same period last year.
However, the growth of the Internet Computer ecosystem has stopped recently. According to DeFi Llama, the network only has 11 decentralized finance applications, with a total value locked of just over $52 million. This makes it much smaller than other popular channels like Base and Sui.
Likewise, 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 high of over $75 million, indicating waning interest.
PCI Price Analysis
The daily chart shows that the Internet Computer token has rebounded after hitting a low of $8.83 in December. It broke above the crucial resistance level at $10.97, the highest swing point from July last year.
ICP also broke above the 50-day and 200-day exponential moving averages, suggesting the bulls are gaining momentum. The token is now hovering around the 50% Fibonacci retracement level and slightly above the lower limit of the Murrey Math Lines trading range.
Most notably, ICP broke through the key resistance level at $11.60, which matched the neckline of a double bottom pattern at $9.40. Therefore, the token will likely continue to rise as bulls target the next major resistance at $15.58, representing a potential 30% increase from the current price.
