The token rose as high as $12 intraday, a significant jump from last month’s low of $8.83. One of the main reasons for this rise may be the acceleration of the combustion cycle for ICP.

Data shows that this cycle is up more than 8,800% on a yearly basis, highlighting the value of the token to users and developers.

According to the latest data, the combustion cycle rate is currently over 849 billion cycles. This figure exceeds the 90-day average of 512 billion cycles, revealing that the overall performance of the network is positive.

The burn cycle indicates that the circulating supply of ICP tokens is not expanding rapidly. Additionally, the number of smart contracts (canisters) within the protocol increased noticeably, reaching 879,670. This number represents significant growth compared to the 374,000 level in the same period last year.

However, the overall growth of the Internet Computer ecosystem has tended to stagnate lately. According to data from DeFi Llama, there are only 11 decentralized finance (DeFi) applications on the network, and the total value locked (TVL) is only around $52 million. This shows that the network is far behind rival chains such as Base and Sui.

Additionally, Chain-Key Bitcoin (ckBTC) on the Internet Computer network is also struggling to gain traction. The market value of ckBTC, designed as the digital twin of Bitcoin, decreased from last year’s peak of $75 million to $25.7 million, indicating a decrease in interest.

This situation reveals that the interest of investors and users in alternative solutions within the protocol is in decline.

Technical analysis shows that ICP is recovering after falling to $8.83 in December. The token managed to break through the resistance level at $10.97, which was one of the highs of July last year.

At the same time, ICP breaking above the 50-day and 200-day Exponential Moving Averages (EMA) indicates that the uptrend is strengthening. The token is currently trading at the 50% Fibonacci Retracement level and is just above the lower end of the Murrey Math Lines trading range.

Notably, ICP breaking the key resistance line at $11.60 constituted a positive signal for the token. This level was considered the neckline of the double bottom pattern at $9.40.

This development increases the possibility that the token will continue to rise and reach the bulls’ next target of $15.58. If this target is achieved, there could be an increase of approximately 30% from the current price level.

The rise of the ICP token is supported by both the increase in the burning cycle and technical indicators giving positive signals. However, more applications and investor interest that will increase the ecosystem’s growth potential could be critical to the token’s long-term performance.