Buying Interest Emerges as ICP Bounces Near Fractured Support

Internet Computer (ICP) has shown signs of weakening in recent trading sessions, with selling pressure building as the price approaches critical support levels. The token’s price has retreated to $5.57, up 2.47% from the previous 24-hour period, following a sharp reversal triggered by a security breach at Odin.fun last week. Despite this rebound, ICP remains in a period of uncertainty, as technical indicators and market sentiment suggest a mixed outlook.

The Internet Computer Protocol’s recent price action has been heavily influenced by the security incident at Odin.fun, which led to a significant drop from a $6.08 high to a low of $5.35. This downward move was accompanied by heavy distribution activity, with trading volume spiking to 965,595 units on Binance—nearly double the typical 24-hour average. While buyers have since stepped in to defend key support levels, the incident has raised concerns about the security and stability of ICP-based applications.

From a technical perspective, ICP’s RSI currently stands at 52.26, placing it in neutral territory. This indicates the token is neither overbought nor oversold and leaves room for movement in either direction. The MACD reading of 0.0405 and signal line at 0.0298 show a positive histogram of 0.0107, suggesting that bullish momentum is building. However, the Bollinger Bands analysis indicates ICP is trading near the upper edge of its recent range, with a %B position of 0.6759, hinting that the token may face resistance at $5.90 in the near term.

Key support and resistance levels will be crucial in determining ICP’s next move. On the upside, a break above $6.08—where the recent security-driven reversal occurred—would signal that the token has successfully bounced off the damage caused by the incident. A further test of the $6.25 resistance level would indicate stronger bullish momentum. On the downside, immediate support is found at $4.86, the lower Bollinger Band, while the more critical level is $4.67, aligning with the 52-week low. A break below $4.86 could trigger additional selling, pushing ICP toward $4.67.

Volume activity has also provided insights into the market's behavior. The surge in trading volume following the security incident suggests renewed buying interest after a period of distribution. However, the elevated volume also highlights the risk of further volatility should concerns resurface. Aggressive traders might consider the current bounce as an opportunity to test the $6.08 resistance level, while more cautious investors may prefer to wait for a confirmed breakout with strong volume confirmation.

In the broader market context, ICP’s performance reflects a wider trend among Layer 1 tokens, which are consolidating after a period of strong gains. ICP’s positioning in the decentralized computing narrative and integration with Bitcoin DeFi infrastructure, such as Maestro’s Ordinals and Runes indexer, could offer long-term support if the broader market remains bullish. However, in the short term, the token faces challenges in overcoming the lingering impact of the Odin.fun breach and regaining investor confidence.

Internet Computer continues to be a key player in the decentralized computing space, with its native token playing a central role in governance, transaction fees, and user incentives. As the market tests ICP’s resilience in the face of recent volatility, the coming days will be critical in determining whether the token can regain upward momentum or face additional selling pressure.

Source: [1] ICP Price Rebounds 2.47% After Security Breach Reversal - Technical Analysis Shows Mixed Signals - Blockchain.News (https://blockchain.news/news/20250817-icp-price-rebounds-247-after-security-breach-reversal-technical-analysis)