Internet Computer (ICP) Price Prediction: From $167M in VC Funding to a 99% Crash – What's Next?

Internet Computer is back in the conversation, but not for the reasons many investors would have hoped. According to crypto analyst Crypto Patel, the ICP launch was one of the most glaring cases where crypto hype turned out to be a costly lesson.

The coin managed to get $167 million worth of funding from some of the biggest venture capital firms like a16z, Polychain Capital, and Multicoin Capital. But when it was launched in May 2021, retail buyers entered at around $700, just for the price to fall almost instantly thereafter.

The ICP price is still stuck in a long-term downtrend

We had a look at the two-week ICP chart, and the long-term trend is still firmly bearish. The ICP price is trading around $2.20 after falling from highs near $1,300 shown on the chart. This is a drop of about 99.8% and constitutes one of the sharpest corrections amongst major cryptocoins.

The chart also displays a downward trendline which has held every rally during the fall period. The trend will not change until the buyers can break out of the trendline. The first level bulls need to reclaim is $3.50. If that happens, the next resistance levels come in around $5.50 and then $9. 

On the downside, losing the current support area could expose $1.30, followed by $0.80 and $0.50. Patel calls the current range a high-risk accumulation zone. That doesn't mean the bottom is in, but it does mark an area where some investors may begin accumulating despite the risks.

Strong VC backing wasn't enough for ICP

Before launch, Internet Computer was one of the most heavily funded projects in crypto. The project managed to raise nearly $167 million during three fundraising campaigns in 2017 and 2018. 

The largest fundraising round saw raising of $102 million, led by Andreessen Horowitz and Polychain Capital, with participation of Multicoin Capital, CoinFund, IOSG Ventures, and SV Angel firms. 

Also, another fundraising campaign helped raise $61 million by Andreessen Horowitz and Polychain, as well as a third one that helped raise $4 million. Even though of all this investment activity, the price of ICP continues its descent. 

Now, Internet Computer is trading around $2.20 and is ranked 54th by market capitalization among cryptocurrencies. Also, the token is currently on over 11,000 watchlists.

Patel argues that ICP's launch is a reminder of how launch-day hype can work against retail investors. Early backers entered at prices far below where public buyers got in, and the token briefly reached a valuation above $40 billion before the sell-off began.

What comes next for the ICP price?

For now, the chart remains the most important guide. The ICP price needs to reclaim $3.50 before the recovery story can gain credibility. A move above that level would put $5.50 and then $9 into focus. If buyers fail to defend the current range, support levels come in around $1.30, followed by $0.80 and $0.50.

The project still has well-known investors behind it and continues to attract interest from the crypto community. But until the ICP price breaks above its long-standing descending trendline, the broader trend remains bearish. 

CoinCodex's 1-month ICP price prediction places the price at $2.33, pointing to limited upside from current levels unless buyers can reclaim the $3.50 resistance and build enough momentum to target the $5.50 level.