Internet Computer struggles to hold momentum near $5.05 amid bearish pressure
Internet Computer (ICP/USDT) slipped by more than 3%, trading near $4.87 after failing to sustain momentum above the $5.05 resistance level. The move highlights weakening short-term bullish sentiment as sellers stepped in at a crucial technical zone.
ICP has been attempting a recovery since testing lows around $4.60, a region that has acted as a strong demand zone in recent weeks. However, the rally stalled just below $5.05, where significant supply pressure emerged. This area, highlighted in the chart, aligns with a previous rejection zone, reinforcing its role as a ceiling for price action.
BITX technical analyst explained, “The $5.05 level is proving to be a decisive barrier. Unless ICP can secure a daily close above it, the market is likely to remain trapped in a sideways-to-bearish structure.”
On the downside, immediate support rests around $4.60–$4.65, an area where buyers have repeatedly entered. A breakdown below this zone could expose ICP to deeper losses toward $4.20. Conversely, a successful retest and hold above $5.05 could open the path toward $5.40–$5.60, where another cluster of resistance awaits.
Market observers note that volume activity has increased around the lower range, hinting at accumulation by buyers, but without a breakout confirmation, the bias remains cautious.
According to BITX strategists , “ICP remains in a consolidation range. Traders are watching for a decisive breakout above resistance or a failure at support before committing to new positions.”
The broader trend for ICP remains neutral-to-bearish in the short term, as repeated rejections at resistance cap upside potential. For momentum to shift, the asset must close above $5.05 and hold the level as support.
Until then, the market is likely to experience choppy price action, with traders closely monitoring the $4.60 support for signs of a potential breakdown or rebound.
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.