## Overview of Internet Computer (ICP)
Internet Computer (ICP) is a first-layer blockchain platform token launched by the DFINITY Foundation in May 2021. ICP is positioned as a 'global computer' providing decentralized Web3 infrastructure for dApps, DeFi, NFT, and AI applications. The platform uses the Threshold Relay consensus protocol, ensuring up to 10,000 TPS, low costs, and a serverless architecture. ICP supports smart contracts, interactions with Bitcoin, Ethereum, and Solana, as well as features like vetKeys (data protection) and Caffeine (AI platform). The token is used for computing payments, staking, and governance through the Network Nervous System (NNS) DAO.
- Price (July 5, 2025): ~$4.83–$4.95 (according to CoinDesk, Binance, CoinMarketCap).
- Market Capitalization: ~$2.3–$2.5 billion (rank ~38–40).
- Trading Volume (24h): ~$50–$80 million, a 10% decrease over the day.
- News:
- Launch of vetKeys (July 1, 2025): data protection, end-to-end encryption, and MEV-resistant DeFi.
- Integration with Solana (June 18, 2025): native transactions through DAO voting.
- Caffeine.ai announced at the World Computer Summit 2025, focusing on AI-dApps (July 2, 2025).
- World Computer Hacker League 2025 (WCHL25): 4-month hackathon for developers (July 1, 2025).
- Negative: Cyberattack with fake wallets linked to Russian-speaking hackers intensified price pressure (July 4, 2025).
## Technical Analysis
- Current Situation: ICP price dropped 5.18% over 24 hours to $4.83–$4.95, breaking support at $5.00, down 84.3% from ATH ($287.68, May 2021). A descending channel is visible on the daily chart, with support at $4.10 and resistance at $5.62. RSI is close to oversold, indicating a potential bounce.
- Key Levels:
- Support: $4.10–$4.50 (0.5 Fib and 20-day SMA).
- Resistance: $5.62, then $7.60.
- Indicators:
- RSI (daily): ~35, close to oversold, with bullish divergence.
- MACD: Bearish, but histogram narrowing indicates weakening pressure.
- SMA: Price below 50-day SMA ($5,175) and 200-day ($6,50).
- Volumes: Decrease from $100 million (June) to $50–$80 million, increase during the sell-off on July 3 (12:00 and 20:00 UTC).
- Chart: Price testing $4.83 in a descending channel. Closing above $5.62 could raise the price to $7.60. Check on TradingView (ICP/USDT) or CoinMarketCap.
## Fundamental Factors
- Positive:
- Technological leadership: integration with Solana, Bitcoin, Ethereum; vetKeys and Caffeine.ai.
- Active development: WCHL25 hackathon, support from a16z, Binance Labs.
- Bullish sentiment on X: 65% of posts praise AI and cross-chain capabilities (@dfinity, @dominic_w).
- TVL $100 million, increasing number of dApps (OISY wallet, Kinic).
- Risks:
- Cyberattack with fake wallets undermined trust (July 4, 2025).
- Volatility: 5.18% drop in a day, pressure from geopolitical risks.
- Competition with Solana, Cardano, Polkadot in Web3.
- Token unlock: 482 million in circulation out of 526 million, potential sell pressure.
## Recommendations
- Traders: Buy on holding $4.50 (target $5.62–$7.60, stop-loss $4.10). Sell on breaking $4.10 (target $3.50). Watch for news on Caffeine and cybersecurity.
- Investors: Growth potential associated with AI, DeFi, and cross-chain integrations, but cyberattacks and volatility create risks. Watch for news on TVL and WCHL25.
- Monitoring: Follow X (@dfinity, @dominic_w) and charts on TradingView.