Internet Computer (ICP) drops by 32% weekly: time to panic or time to accumulate?

The asset’s price has fallen by almost 50% from its local peak.

Over the past week, the asset’s price has collapsed by about 32%, raising questions about whether this is a perfect buying opportunity or the start of a bigger crash.

What’s next?

ICP stole the show at the start of the month, with its valuation exploding to almost $9.50 on November 8, the highest since January this year. The market cap briefly exceeded $5 billion, and it looked like a new boost was on the way.

However, the major correction of the broader cryptocurrency market put pressure on these expectations. ICP is among the biggest losers of the past week, down more than 30% and currently trading at less than $5.

Despite the pullback, many analysts believe that the token has not yet said its last word for this cycle. X user WIZZ told their more than 800,000 followers indicate that ICP is approaching bounce territory, predicting that the next push could be as high as $20.

Rushi was even more optimistic. The analyst claimed that a potential price explosion for Bitcoin (BTC) to $220,000 in the next 45 days could lead to an all-out revival of the altcoin, with ICP “going straight” at $100.

It’s important to note that the primary cryptocurrency has seen better days, and reaching that level seems unlikely (at least for now). At the time of writing, BTC is trading at just over $95,000, marking a decline of 10% in the past week.

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This statistic represents the buy signal

According to ICP’s Relative Strength Index (RSI), valuations could indeed recover in the short term. The technical analysis tool measures the speed and magnitude of recent price changes to estimate whether the asset is about to undergo a reversal.

It ranges from 0 to 100, and ratios around 30 indicate that the token is oversold, indicating that a potential spike could be coming. On the other hand, anything above 70 is considered bearish territory. ICP’s RSI plummeted below 30 a few hours ago, while it is currently just north of that point.