Internet Computer (ICP) slipped back into its consolidation zone after a brief but sharp rally failed to hold above the critical $5.17 resistance, signaling renewed weakness across the altcoin market.
After Monday’s high-volume breakout attempt, ICP struggled to maintain upward pressure. The sharp rejection from the mid-range supply zone suggests that buyers may be losing control, pushing the market back into a familiar sideways structure. Analysts now view the recent move as a classic example of breakout exhaustion, with liquidity swept above previous highs before price retreated.
Market Structure: From Breakout to Re-Accumulation
Recent price action shows ICP pushing above the $5.17 barrier, only to face immediate selling pressure, sending it back toward its support band between $4.60 and $4.90. This zone has remained structurally important for months, acting as both demand and consolidation territory.
Price rejection from the upper supply block signals that bulls failed to secure a sustainable shift in market structure.
BitXJournal senior technical analyst commented:
“The wick above $5.17 shows clear absorption. ICP swept liquidity, tapped into the unmitigated supply, and rotated back into its range. Until buyers reclaim the mid-$5s, this remains a consolidation market.”
The chart also highlights previous Break of Structure (BOS) and Change of Character (CHoCH) levels, which continue to guide short-term sentiment.
Volume Spike Indicates Exhaustion, Not Strength
Monday’s surge came with a notable increase in trading volume, yet the rally lacked continuation. According to BitXJournal market experts:
“High volume into resistance often signals distribution rather than strength. If buyers were truly dominant, we’d see sustained closes above the zone, not immediate rejection.”
<u>The aggressive selloff that followed reinforces concerns of weakening bullish momentum.</u>
What Comes Next for ICP?
Analysts now expect ICP to oscillate within its established range unless a decisive break occurs. The strong support around $4.60–$4.70 remains the first level to watch. A loss of this zone could push ICP toward deeper liquidity areas near $3.50–$3.80, shown on the broader structural map.
Conversely, reclaiming $5.20 could re-ignite upward momentum and re-open the path toward the $6.00–$6.50 supply zone.
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.