ICP -49.98% on Short-Term Volatility Amid Market Correction

On SEP 3 2025, ICP dropped by 75.98% within 24 hours to reach $4.865. Over the past week, the asset saw a steeper decline of 144.78%, though it has shown resilience with a 174.74% gain over the past 30 days. These figures highlight the extreme short-term volatility that has characterized ICP’s price action in recent trading cycles.

The sharp 24-hour drop came amid a broader selloff in high-risk digital assets, as liquidity constraints and macroeconomic uncertainty weighed on market sentiment. Analysts project that the decline could reflect both profit-taking after a recent rally and broader risk-off behavior from institutional and retail investors alike. The 144.78% weekly drop further underlines the asset’s sensitivity to market conditions, though the 174.74% monthly rebound suggests that some positions were reaccumulated during the pullback.

Technical analysis of the ICP chart reveals key support and resistance levels that have been tested in recent sessions. The price has breached several short-term resistance bands and is now consolidating near a critical support zone. This dynamic suggests that the asset may be at a turning point in its near-term trajectory, though further data will be needed to determine the strength of any reversal.

Backtest Hypothesis

A proposed backtesting strategy focuses on using a combination of moving averages and relative strength indicators to capture short-term reversals in ICP’s price action. The model triggers buy signals when a 50-period moving average crosses above a 200-period line and the RSI moves above 30, indicating oversold conditions. Sell signals are generated when the opposite occurs and RSI crosses above 70, signaling overbought territory.

The hypothesis is that such a strategy could have captured the recent monthly rebound by entering long positions during the 144.78% weekly decline, and exiting near the peak of the 174.74% recovery. While the model has not yet been validated with full historical data, it offers a framework for testing the asset’s behavior under similar volatility conditions.

This strategy aligns with the recent technical structure of the ICP chart, particularly in how it emphasizes key levels of support and resistance that have been repeatedly tested in the short term. If confirmed, it could provide traders with a rule-based approach to navigating the asset’s high volatility.