Internet Computer’s token remained within a tight range on Friday despite a popular crypto researcher criticizing its technology.
The Internet Computer (ICP) token traded at $11.18, up 93% from its 2024 low. However, it remains at the same level as during this period in 2024, even as other popular cryptocurrencies such as Bitcoin (BTC ) and Ripple (XRP) are hovering near their all-time highs.
ICP remained largely unchanged after Justin Bons, a well-known crypto researcher and hedge fund manager, criticized its technology.
In a detailed thread on X, Bons argued that the Internet computer network is highly centralized and insecure. Bons’s first claim was that the Internet computer depends on up to forty independent subnets, each responsible for its own security. Although Avalanche (AVAX) and Polkadot (DOT) use similar technology, their subnets use shared security, making them more secure.
According to Bons, ICP is highly insecure because it openly lists the data center locations of its nodes, potentially exposing them to attacks.
Bons also criticized Internet Computer’s claim of infinite scalability. He argued that the scalability of the network has limits, as all subnets must communicate with each other.
Another issue raised by Bons concerns ICP’s claim that it has solved the oracle problem using HTTP outcalls, which allow smart contracts to retrieve data from Web2 APIs. He believes this approach is flawed because it relies on centralized tools.
These criticisms likely explain why Internet Computer has underperformed compared to other blockchains in the crypto industry. For example, ICP only hosts a handful of DeFi applications, with a total value of $41 million. The market cap for stablecoins is only $5 millionwith Tether accounting for 66% of the total.
ICP price analysis
The daily chart shows that the price of Internet Computer has risen slightly in recent days, while most cryptocurrencies recovered. The price of ICP rose after forming a double bottom chart pattern at $9.33. This bullish reversal pattern is characterized by two lows and a neckline, which in the case of ICP is at $12.72.
The token has risen above the 200-day moving average and the 50% Fibonacci retracement level. Moreover, it has broken above the rising trendline that links the lowest swings since November last year.
A bullish breakout for ICP will be confirmed if the price moves above the double bottom neckline at $12.72. Such a move could trigger a rally to the next resistance level at $15.60, the November high.
