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- Internet Computer (ICP) is expected to retest the $7.4 resistance level after a nosedive from its monthly high.
- Analysts believe that the recent WordPress and Caffeine integration could significantly boost ICP’s network growth.
Internet Computer (ICP) was recently “on fire” when it finally broke above the $7.4 resistance level to reach $9.49. In just 24 hours, the asset surged by 22% with its market cap rising to $5.1 billion.
According to reports, this sudden rally was triggered by excitement over the launch of Caffeine AI.
Caffeine AI and WordPress Integration to Boost ICP’s Price
The Caffeine AI platform was launched by Dfinity to enable developers to create decentralized AI applications with simple prompts in code, natural language, and images.
However, current market data suggests that this momentum is fading as the price declines to $6.1, losing 3.58% of its value in the last 24 hours. Even so, it overtook Bittensor (TAO) to become the largest AI-focused crypto.
It is important to note that TAO has been dominating in the AI sector as companies, including Everything Blockchain Inc., have been investing in it. As stated in our earlier publication, Everything Blockchain allocated $10 million to this asset together with four others.
At the time of writing, TAO had retaken its position with a market cap of $3.6 billion, while ICP had a market cap of $3.3 billion. Despite TAO’s dominance, it has declined by 3% over the last 24 hours, 6.8% over the last 7 days, 15% over the last 30 days, and 7.5% over the last 90 days. ICP, on the other hand, has recorded 8% and 83% gains in the last seven and 30 days, respectively.
Interestingly, some analysts expect another ICP rally. The reason is largely linked to recent developments, including the WordPress and Caffeine integration, which is expected to drive ecosystem growth.
In a post made by Internet Computer, WordPress was reported to power about 43% of the internet. This means 4 million canisters could be running on the Internet Computer network if Caffeine manages to capture just 1% of this.
This integration could also create an interesting loop where every app created would translate to new canisters. According to the post, new canisters would also increase the number of cycles burned, putting downward pressure on the ICP.
According to our earlier update, developers are able to build canisters that can interact with Solana through Chain Fusion technology as of June 18.
Apart from this, ICP has been ranked among the top AI and Big Data cryptos with the highest developer activities, as indicated in our earlier discussion. Not just that. It was also listed among the blockchain platforms with the highest development activities in the previous month, as mentioned in our news brief.
Technically, the current price of ICP ($6.1) is very crucial to its next direction. Analysts have noted that the $6.02 and $6.31 range represents a unique accumulation zone. A move above this range could see the asset attempting another break above the $6.42 and $6.45 range.
Once it successfully secures this territory, ICP could target the $7.0 and $7.3 resistance zones. Breaching this point and subsequently the $7.4 resistance point could see ICP moving to a historical supply region of $8.38 to $8.54.
