The Internet Computer price surged over the weekend in huge volume, following a mention in a Goldman Sachs report. But are ICP bulls getting over-excited?
Internet Computer Protocol is last trading at $44.76, higher by $1.79, (+4.09%)
The internet computer price saw a sudden surge in trading volume after Goldman Sachs covered the project in its latest cryptocurrency report. The market reacted favourably, and more than 2.5x the average daily volume changed hands as ICP surged from $27.61 to $48.20.
This will offer little much in the way of help for investors who bought ICP when it was listed last month.
The creation of the DFINITY Foundation, ICP, has ambitious goals. It aims to revolutionise the internet and create a ‘web 3.0’. Founder Dominic Williams plans to break Big Tech’s stranglehold of the web by allowing developers to install code directly onto the public internet and making cloud services and servers a thing of the past.
When ICP launched on multiple exchanges on May 17th, its $750 debut-day high placed it into the top ten most valuable crypto assets, furthermore, due to some confusion, it traded as high as $3,161 on the Binance exchange.
So, depending on which exchange you paid the day one high, ICP was down either 93% or 99% on Saturday morning.
Goldman Sachs name-drops Internet Computer Protocol
Saturday. Goldman’s released a lengthy report entitled: Digital Assets: Beauty Is Not in the Eye of the Beholder.
The report covered several assets, of which ICP was one. The banking giant highlighted both positives and negatives for ICP:
Pros: Innovative, could pave the way for he future.
Cons: Untested, early stage, complex.
After being beaten down for so much of the last 6 week’s, the Internet Computer price chose to focus on the pros.
Internet Computer price outlook
The 4-hour chart shows that ICP broke out of a restrictive downtrend at $31.00. The move above the trendline triggered an acceleration of buying, sending the price almost vertical. Although, now, this spike is starting to look a little overstretched. Earlier this morning, the Relative Strength Index (RSI) was flashing an overbought signal. However, it has since retreated from its 70.80 high and is last 67.50.
Furthermore, the report highlighted some headwinds facing the crypto market as we advance and hardly a glowing endorsement.
“We do not believe that cryptocurrencies are a strategic asset class that adds value to our client’s portfolios.”
ICP may see some speculative buying on the back of the report, just on the basis that its value has been decimated over the last 6 weeks.
However, I think the outlook remains uncertain. Nonetheless, what is certain is that buyers at today’s prices will stand to benefit a lot sooner than buyers on May 17th will, should ICP fulfil its potential.