ICP +233.68% in 24 Hours Amid Volatile Short-Term Movements

On SEP 1 2025, ICP surged by 233.68% within 24 hours to reach $4.883. Over the past week, the token experienced a sharp decline of 312.87%. Despite this, it rebounded with a 233.68% increase in the last month. However, over a one-year span, ICP has seen a dramatic drop of 5081.45%, reflecting its extreme volatility and sensitivity to market sentiment and technical conditions.

The recent 24-hour rally underscores the token's ability to respond rapidly to market dynamics. Analysts have noted that ICP's sharp upward movement was driven by a combination of algorithmic trading patterns and speculative positioning. While the weekly and monthly figures indicate short-term volatility, the 24-hour gain has attracted attention from traders and short-term investors looking to capitalize on its high-momentum characteristics.

Technical indicators suggest that ICP remains in a highly volatile trading environment, with frequent shifts in direction. The recent surge has pushed the token into overbought territory according to the Relative Strength Index (RSI), though this has not yet triggered a bearish reversal. Traders are closely monitoring key support and resistance levels, which have historically defined the token’s behavior during similar high-volatility episodes.

The RSI and Moving Average Convergence Divergence (MACD) have been used as the core indicators in assessing ICP’s short-term momentum. These metrics suggest that while ICP has seen a sharp rebound, the underlying trend remains uncertain. The MACD line crossed into positive territory during the 24-hour surge, indicating a potential continuation of the upward movement in the near term. However, a diverging MACD signal could hint at an impending correction, particularly if the token fails to maintain its current price level.

Backtest Hypothesis

A recent backtesting analysis was conducted to evaluate ICP’s price behavior following a 5% daily close increase. The strategy tested the performance of entering a long position on days when the close rose by at least 5%. The data window spanned from January 1, 2022, to September 1, 2025, using daily close prices to compute day-over-day moves. No additional risk filters were applied, allowing for a purely post-event performance analysis.

The results of the backtest demonstrated that ICP's price often exhibited continued positive momentum in the days following a 5% gain, particularly in the short term. However, the absence of risk controls also exposed the strategy to the token's extreme volatility, especially over the longer term. This highlights the importance of incorporating stop-loss and risk management tools in any investment approach involving ICP, especially in light of its pronounced drawdowns.