Internet Computer’s token remained in a tight range on Friday despite a popular crypto researcher criticizing its technology.
Internet Computer (ICP) token was trading at $11.18, up 93% from its 2024 low. However, it remains at the same level it was during this period in 2024, even as other popular cryptocurrencies like Bitcoin (BTC) and Ripple (XRP) are hovering near their all-time highs.
ICP was 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’ first claim was that Internet Computer depends on at most 40 independent subnets, each responsible for its own security. While Avalanche (AVAX) and Polkadot (DOT) use a similar technology, their subnets utilize 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 having infinite scalability. He argued that the network’s scalability has limits since all subnets must communicate with one another.
Another issue Bons raised 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 instance, ICP only hosts a handful of DeFi applications, with a total value locked of $41 million. Its stablecoins market cap is just $5 million, with Tether accounting for 66% of the total.
ICP price analysis
The daily chart shows that Internet Computer’s price has risen slightly in recent days as most cryptocurrencies rebounded. ICP’s price increased after forming a double-bottom chart pattern at $9.33. This bullish reversal pattern is characterized by two low points and a neckline, which, in ICP’s case, lies at $12.72.
The token has moved above the 200-day moving average and the 50% Fibonacci retracement level. Additionally, it has broken above the ascending trendline that connects the lowest swings since November last year.
A bullish breakout for ICP will be confirmed if the price moves above the double-bottom’s neckline at $12.72. Such a move could trigger a rally to the next resistance level at $15.60, its November high.
