ICP Finds Crucial Support Level After Bearish Run. Can New AI Smart Contract Capabilities Boost Recovery?

In recent developments, Internet Computer (ICP), the blockchain network powered by DFINITY, has showcased the first implementation of a blockchain AI smart contract, marking a significant milestone in the integration of Artificial Intelligence with blockchain technology. This initiative is part of the protocol's ambitious goal to establish a system where sophisticat

Say hello to a massive acceleration of AI smart contracts 🧠 on the Internet Computer #ICP blockchain.
Brilliant work by the @dfinity team has accelerated deterministic floating point instructions by 10X. We continue on our mission to run sophisticated LLMs as smart contracts… pic.twitter.com/PmoBXwTjvm
— dom.icp ∞ (@dominic_w) April 19, 2024

ts.

Further enhancements are planned, with ICP's smart contracts poised to access Single Instruction, Multiple Data (SIMD) instructions. This upgrade is expected to significantly boost the network's speed and efficiency, potentially facilitating a shift from a 32-bit to a 64-bit environment, which would expand the smart contracts' memory limits.

The application of AI across various sectors is being pioneered by Internet Computer's efforts, extending beyond blockchain into fields such as sports, health, security and education. This broad adoption emphasizes the transformative potential of AI in numerous industries.

ICP Technical Analysis

ICP has been experiencing market volatility. Over the last 30 days, the token's value has decreased by over 23%, with a 13% decline over the last 7 days and a 3.52% drop in the last 24 hours as of writing. Also, its market cap stands at over $6.2 billion while its volume has gained by over 28% in the last 24 hours to read slightly above $124 million. Despite these setbacks on the 7-day and 30-day losses, the price trajectory has respected an ascending trendline that has been in place since December 20th, continually testing this crucial support level.

ICPUSD Weekly Chart (TradingView)

On the weekly timeframe, the recent bearish momentum has once again brought ICP to test this support level after the bearish closure of last week's candle. The market sentiment remains bearish as observed in the current weekly candle.

On the daily timeframe, since reaching a high of $20.9 on March 27th, the price has been mostly bearish. However, it found support at the ascending trendline at the $11 mark and rebounded to $16.4, falling between the 50% and 61.8% Fibonacci retracement levels, before resuming its downward trend. Today, the price opened at $13.5 and has since then hit a high of $13.8 and a low of $13.177, continuing to make new lows.

ICPUSD Daily Chart (TradingView)

The potential for a bullish reversal exists if the price can maintain its level above the trendline support. If it holds above this level, the price could revisit previous recent highs of $16.4 and $20.9. On the other hand, if the bears continue to dominate and push the price below the ascending trendline support level, ICP could retest the recent low at $10.5.

The Relative Strength Index (RSI) stands at 43, suggesting that a dip to the trendline might push it into the oversold region, setting the stage for a possible recovery. The technical indicators currently signal a cautious bullish momentum if the price maintains above the ascending trendline support. This could drive ICP towards higher levels of $24 and even $37 in the near future.

ICP