The Internet Computer Protocol (ICP) token faced sharp selling pressure on July 4, 2025, plunging over 5% to $4.8373, amid heightened cybersecurity fears linked to a Russian malware campaign targeting crypto wallets.
Cybersecurity Report Sparks ICP Price Decline
A damning report by Koi Security identified over 40 malicious browser extensions imitating popular crypto wallets such as MetaMask and Coinbase. These fake add-ons—some still active—were tied to Russian-speaking actors and designed to steal sensitive credentials from unsuspecting users.
The malware has reportedly been active since April 2025, causing widespread concern across the crypto sector.
Although the Internet Computer network itself was not breached, the reputational risk to self-custody-focused ecosystems like ICP triggered a strong negative investor response. The incident adds pressure to a token already sensitive to market volatility and regulatory uncertainty.
Technical Breakdown: ICP Drops Below $5
The ICP-USD pair saw a 4.3% decline between July 3 07:00 and July 4 06:00 UTC, as bearish sentiment intensified:
- Support at $5.00 was decisively broken, forming a descending channel with resistance near $5.13.
- Major selloffs occurred at 12:00 and 20:00 UTC on July 3, both accompanied by above-average volume spikes.
- The lowest point of the day was $4.8373, down from $5.13, a total range of $0.26 or 5.1%.
- A brief support formed at $4.88, with mild recovery attempts stalling near $4.89.
Volume exceeded 94,000 units between 06:27 and 06:30 UTC, signaling possible institutional exit activity.
Security Risks Cast Shadow on Decentralized Protocols
The attack, while external, has undermined confidence in digital self-custody models and browser-based wallet infrastructure. For platforms like Internet Computer, which champion full-stack decentralization, such incidents pose long-term trust challenges.
The ICP token’s vulnerability to risk-off sentiment suggests that any recovery may require both technical stability and improved investor confidence.
What’s Next for ICP Price?
With current resistance at $5.13 and support near $4.80, ICP is likely to remain range-bound in the short term unless a clear fundamental catalyst emerges. Security narratives and macro factors will continue to influence momentum.
Investors should watch for further malware updates, volume patterns, and recovery above the $5.00 mark for signs of a potential reversal.
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.