Internet Computer (ICP) Token Price Analysis: Will It Break Out of the Range Despite Criticism?

Internet Computer (ICP) token was trading at $11.18, up 93% from its 2024 low. However, it remains at the same level it was during this period in 2024

Internet Computer’s (ICP) native token showed little price movement on Friday after a popular crypto researcher criticized the technology.

ICP was trading at $11.18, up 93% from its 2024 low. But it was also trading flat year-to-date as other popular cryptocurrencies, such as Bitcoin (BTC) and Ripple (XRP), hovered near their all-time highs.

ICP showed little reaction after Justin Bons, a well-known crypto researcher and hedge fund manager, slammed the technology.

In a lengthy thread on X, Bons argued that the Internet Computer network was highly centralized and insecure.

Bons’ first point of contention was that Internet Computer relies on a maximum of 40 independent subnets, each subnet being responsible for its own security. While other networks, such as Avalanche (AVAX) and Polkadot (DOT), also use a subnet technology, their subnets use shared security, making them more secure.

Bons argued that ICP was also insecure because the data center locations of its nodes were publicly listed, potentially opening them up to attack.

1/31) ICP is centralized & insecure; ICP is dangerous!

You can bring down ICP by only attacking 40 nodes in known & fixed data centers!

ICP promises the moon but offers nothing unique

Scalability without decentralization is meaningless; ICP's modular design is the problem:

Bons went on to criticize Internet Computer’s claim of having infinite scalability. He argued that the network’s scalability was limited because all subnets had to communicate with each other.

Bons also took issue with ICP’s claim to have solved the oracle problem by using HTTP outcalls, which allow smart contracts to retrieve data from Web2 APIs. He argued that this approach was flawed because it ultimately relied on centralized tools.

These criticisms may help to explain why Internet Computer has lagged behind other blockchains in the crypto industry. For example, ICP only hosts a handful of decentralized finance (DeFi) applications, with a total value locked of $41 million. Its stablecoins market cap is also only $5 million, with Tether (USDT) accounting for 66% of the total.

ICP Price Analysis

On the daily chart, the price of Internet Computer has shown a slight increase in recent days as most cryptocurrencies have rebounded. ICP’s price rallied after forming a double-bottom chart pattern at $9.33. The bullish reversal pattern has two lows and a neckline, which lies at $12.72 in ICP’s case.

The token has now moved above the 200-day moving average and the 50% Fibonacci retracement level. It has also broken out of the ascending trendline that connects the lowest swings since November last year.

A bullish breakout for ICP will be confirmed if the price manages to close above the double-bottom’s neckline at $12.72. Such a move could see the token rally to the next resistance level at $15.60, which is its November high.