Bearish Momentum Extends as Key Support Zone Comes Under Test
Internet Computer (ICP) fell sharply over the last 24 hours, losing nearly 7% of its market value as broader crypto sentiment turned cautious following a volatile start to the week. The digital asset, which traded near $3.47, has now slipped toward a critical multi-month demand zone, reflecting mounting selling pressure and investor hesitancy.
The sharp downturn came after a brief recovery attempt that failed to gain traction above the $4.20 resistance zone, as highlighted on daily charts. The descending channel pattern visible since mid-2024 remains intact, signaling persistent downward momentum despite periodic rebounds.
According to market structure analysis, ICP is approaching a key support region between $3.20 and $3.50, marked by heavy historical buying activity. Beneath this zone lies a deeper long-term support around $2.80–$3.00, which last acted as a rebound point in early 2024.
Analysts warn that a sustained breakdown below current levels could open the door to further declines.
“The structure still leans bearish unless ICP closes decisively above $4.20,” said BITX technical strategist. “While there’s evidence of accumulation, buyers have yet to demonstrate control.”
The chart also reveals a strong resistance cluster near $6.00, represented by the red zone, which previously capped several upside attempts. Until that level is reclaimed, price action is likely to remain range-bound or trend lower.
Trading volume has tapered compared to early October peaks, suggesting that retail participation has cooled while institutional flows remain limited. Analysts attribute the weakness partly to broader risk aversion across altcoins, as investors await clarity on macroeconomic indicators and upcoming Federal Reserve commentary.
“Short-term volatility remains high, but long-term investors may view this dip as an opportunity to accumulate at a discount,” According to BITX analysts, adding that fundamental adoption metrics for the Internet Computer ecosystem remain steady.
For now, ICP’s ability to defend the $3.40 region will be crucial in determining whether this correction evolves into a deeper retracement or stabilizes into a base for recovery
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.