Internet Computer: Is a bullish relief on the cards for ICP traders?

• ICP bears close in on a 40% discount from February highs as signs of a pivot start appearing.
• Internet Computer secures development lead amid an important announcement regarding smart contracts.

The Internet Computer’s native cryptocurrency ICP is certainly one to watch given the discount it has received in the last few weeks. Moreover, it is now approaching a key support level and there are signs of a potential pivot in the works.

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ICP’s $5.18 press time price was rapidly approaching an important or noteworthy range. Interestingly, the price was now interacting with the 200-day moving average.

The latter is often considered a pivot zone but that may not always be the case. Perhaps a more important observation is that the price is now within a short-term support range as indicated in the price chart.

Source: TradingView

If ICP’s current support holds strong, then investors should look out for accumulation within the $5 to $5.20 price range.

ICP has been experiencing outflows since its February peak and has since then pulled back by roughly 36%.

Furthermore, the Money Flow indicator has now pivoted, confirming that some accumulation is now taking place.

ICP is getting attention but no conversion to buying pressure

ICP traders may want to take note of multiple metrics which may point to the next major move.

For example, its price volatility metric remains high, confirming that ICP is still receiving decent levels of investors’ attention.

The token’s social dominance metric registered its largest 4-week spike during Tuesday’s trading session, meaning there was a lot of chatter among investors.

Source: Santiment

These metrics indicate a high probability of securing robust volumes to keep the price going or to support a pivot. The latest development data may offer some incentives for bullish sentiment.

The latest ProofOfGitHub data reveals that the Internet Computer had the highest development activity out of the top decentralized networks.

GitHub Daily Development Activity:

#1: 656 Internet Computer
#2: 605 Cardano
#3: 588 Ethereum
#4: 560 Polkadot / Kusama
#5: 540 Hedera
#6: 472 Vega Protocol
#7: 435 Status
#8: 422 IOTA
#9: 362 Uniswap
#10: 352 Everscale pic.twitter.com/BfjoUc4FZJ

— ProofofGitHub (@ProofofGitHub) March 8, 2023

ICP’s weighted sentiment metric reveals that the sentiment is still in favor of the bears, contrary to expectations. In other words, most traders still expect ICP’s price to continue tanking.

Source: Santiment

On the plus side, DFINITY just revealed that it has been working on smart contracts that can facilitate Bitcoin and Ethereum transactions without the need for private keys.

Although the move is intended to offer higher efficiency and smoothness, it triggered some security-related criticism.

Internet Computer canister smart contracts can create #Bitcoin and #Ethereum transactions with no private key needed

The unique abilities of the #InternetComputer blockchain and canister smart contracts will allow for many new innovative ideas to be built out pic.twitter.com/nTH9nzgixL

— DFINITY (@dfinity) March 7, 2023

Realistic or not, here’s Internet Computer’s market cap in BTC’s terms

The development is part of the network’s plan to support a wider integration with other networks. As for ICP’s price action, investors should keep in mind that there are economic and regulatory issues currently influencing crypto prices.