ICP Faces Resistance After Sharp Rebound, Traders Eye $3.50 Zone
Internet Computer (ICP/USDT) is showing early signs of exhaustion following a 10% rally, with the price now retracing toward the $3.75 region on the daily chart. The move comes after a short-lived surge that briefly lifted the token above the $4.20 resistance, sparking renewed discussion about its short-term trend.
The latest chart data reveals that ICP broke out of a descending wedge pattern earlier this year — a structure often associated with the end of a prolonged downtrend. Since then, the asset has oscillated within a defined range, capped by resistance around $5.80–$6.50 and supported between $3.10 and $3.50.
“The price structure is at a critical juncture,” explained one BitXJournal crypto market analyst. “Holding above the $3.50 zone could confirm a higher low formation, suggesting the start of a broader reversal.”
However, traders remain cautious. Despite the breakout, ICP’s rally has so far lacked the strong follow-through typically needed to reclaim mid-2025 levels. The orange demand zone, highlighted between $2.80 and $3.30, represents a major liquidity area where buying activity historically increased.
A daily close below $3.50 could expose ICP to renewed downside pressure toward $3.00, while a rebound above $4.20 would strengthen bullish conviction.
Volume has seen a noticeable spike, reaching over 10.3 million ICP in daily transactions, suggesting elevated participation during recent volatility. “That volume increase shows traders are active again,” BitXJournal analyst noted. “If momentum continues, the $5 resistance zone could be revisited sooner than expected.”
At present, market sentiment is cautiously optimistic. ICP’s ability to sustain current levels will determine whether last week’s breakout attempt evolves into a sustained uptrend — or fades into another short-term rally.
ICP’s next few sessions are pivotal: maintaining strength above $3.50 could solidify the token’s foundation for a potential recovery into late 2025.
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.