ICP outshines DOT, ADA in dev activity: So why are prices struggling?

  • While ICP’s development activity dropped, ADA and DOT’s graphs moved up.
  • Metrics and indicators looked bearish on ICP.

Internet Computer [ICP] performed well last week on the development front, as it outshone top players in the space, notably Polkadot [DOT] and Cardano [ADA].

However, this achievement did not affect the token’s price, as its daily chart remained in the red at press time. 

Internet Computer’s development is rising

As per a recent tweet from CryptoDep, ICP’s development activity stood at 420 in February, while ADA and DOT’s values were at 410 and 397, respectively.

However, AMBCrypto’s look at Santiment’s data revealed a different story. We found that things changed in March as Internet Computer’s development activity dropped in the last few days. 

Source: Santiment

Additionally, its Dev Activity Contributors Count dropped over the last seven days. It was interesting to note that while ICP’s development activity dropped, ADA and DOT’s cheats moved upward.

A high level of development activity means more efforts are made by developers to improve a blockchain. So, the impact of the rise in the metric on their prices will be interesting to keep an eye on. 

Cardano ADA 13.33.01 03 Mar 2024.png

Source: Santiment

How is ICP reacting? 

ICP’s price also shot up by 5% in the last seven days. At the time of writing, the token was trading at $13.18 with a market cap of over $6 billion.

The recent negative price movement might last longer, as a few metrics looked bearish. For example, the token’s Open Interest was high.

A rise in this metric often heralds a continuation of the current price trend

ICP’s Binance Funding Rate also remained in the green, meaning that derivatives investors were actively buying ICP at a lower price. 

Internet Computer ICP 13.44.07 03 Mar 2024.png

Source: Santiment

Read Internet Computer’s [ICP] Price Prediction 2024-25

To see what to expect from the token in the coming week, AMBCrypto took a look at its daily chart. Things looked pretty bright, as most indicators supported the sellers.

Per the Bollinger Bands, ICP’s price had entered a squeeze zone at press time. The Relative Strength Index (RSI) also registered a downtick, indicating that the chances of a continued price decline were high. 

ICPUSDT 2024 03 03 13 46 19.png

Source: TradingView

Next: Dogecoin: As Open Interest crosses 3-year high, how did DOGE react?

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