Is Coinbase Responsible for the Plunge?

Following the price retreat, ICP dropped down to the 55th-biggest cryptocurrency.

ICP is the worst-performing cryptocurrency today (at least among the top 100), posting a 10% price decline.

However, certain technical indicators suggest this might be only a short-lived pullback, while multiple analysts support the bullish scenario.

ICP Heads South

Just a few hours ago, the asset’s valuation plunged to a one-week low under $3, while its market capitalization sank to approximately $1.6 billion.

It is important to note that ICP’s negative performance aligns with an overall correction sweeping through the broader crypto market. Bitcoin (BTC) slipped beneath $80,000, while popular altcoins like Worldcoin (WLD), Cronos (CRO), Arbitrum (ARB), and Aptos (APT) tumbled by 7-8% over the past day.

In the meantime, Coinbase could have also played a role in Internet Computer’s downfall. Recently, it removed six non-USD trading pairs, including ICP/USDT and ICP/GBP.

Such actions by one of the biggest cryptocurrency exchanges reduce liquidity for the affected tokens and make it harder for traders to enter or exit positions. Fewer trading options often mean lower volume and weaker investor confidence, especially amid a crypto pullback.

At the same time, one should keep in mind that if Coinbase had removed all ICP-related services, the impact would likely have been far more severe and could have triggered a much sharper price collapse.

The asset remains available on numerous well-known exchanges, including Binance, Bybit, Bitget, OKX, and more. Two months ago, the leading South Korean trading venue Upbit also hopped on the bandwagon, fueling a 16% price increase for ICP following the news.

Resurgence Comes Next?

ICP’s Relative Strength Index (RSI) signals that the price pullback may soon be replaced by a revival. The technical analysis tool runs from 0 to 100, and readings below 30 indicate that the valuation has dropped too much, too quickly, potentially setting the stage for an upside move. Conversely, anything under 70 is considered a warning of impending correction. Currently, the RSI stands at around 28.

Analysts like Kong Trading and JAVON MARKS expressed confidence in the coin’s outlook. The former noted that almost half of ICP’s supply is locked in staking, with people committing for years.

“That’s not weak conviction. Hard to ignore when supply keeps tightening like this,” they added.

For their part, JAVON MARKS recently argued that ICP has displayed a Falling Wedge pattern and shows signs of strength. They believe a potential breakout could spark a 300% move above $10 and “may act as the start of an even larger reversal.”