Internet Computer Faces Strong Downtrend with Bears Targeting Sub-$3 Levels Amid Broader Market Weakness
Internet Computer (ICP) has extended its decline this week, sliding to around $3.09 on the daily chart after a sharp reversal from the $4.40 resistance area. The token has shed more than 63% from its recent swing high, signaling renewed bearish control across the broader altcoin market.
ICP Technical Analysis: Testing Major Support Zone
Based on the current chart structure, ICP has broken down from a prolonged consolidation range, falling through key support near $3.40–$3.20. The orange zone between $2.80 and $3.10 now serves as the final near-term defense, with traders closely monitoring for signs of accumulation or further capitulation.
Earlier this year, ICP had managed to break out of a descending wedge, rallying briefly before momentum faded near the $4.60–$5.00 resistance band (highlighted in green). Since then, sustained sell pressure and weak trading volume have driven the pair lower, erasing prior gains.
BITX market analyst explained, “The $3.00 mark is pivotal for ICP. If bulls fail to defend it, we could see a quick drop toward the $2.50 range, especially if overall market sentiment remains fragile.”
The broader digital asset market has been characterized by volatility, with traders shifting toward high-liquidity majors and real-world asset (RWA) plays. Meanwhile, ICP’s ecosystem development continues, but price action remains dominated by technical flows rather than fundamentals.
Recent on-chain data shows declining transaction activity and a drop in developer engagement, suggesting participants are waiting for clearer signals before re-entering positions.
According to BITX crypto strategists, “The Internet Computer still holds long-term potential in decentralized cloud infrastructure, but near-term weakness could persist unless we see a decisive recovery above $3.50.”
In the coming days, traders will watch whether ICP can sustain above the $3.00 mark, which historically has acted as both a launch point and breakdown zone.
If the level holds, a short-term bounce toward $3.50–$3.80 is possible. However, a confirmed close below $2.90 could trigger a deeper retracement.
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.