ICP's $6.35 Support Crucial for $8.00 Challenge

Internet Computer ($ICP) has surged more than 150% in recent weeks, fueled by a dramatic spike in open interest and trading volume, sparking speculation about whether the bullish momentum can sustain itself beyond current price levels. The token, which underpins the Internet Computer blockchain, has drawn renewed attention from traders and institutions, with derivatives data showing open interest reaching a three-year high of $237.92 million as of Friday. This surge reflects a broader reinvigoration of the crypto market, with ICP outperforming many of its peers amid a backdrop of heightened liquidity and speculative activity.

The recent price action has been characterized by a sharp breakout from a long-standing consolidation range. ICP tested its $6.66 resistance level on November 7, accompanied by a 68% above-average volume spike, but failed to break through, retreating to trade near $6.03.

However, renewed buying pressure emerged on November 12, with the token climbing 7.88% to $7.77 amid a 261% surge in trading volume compared to the 30-day average. Analysts attribute this rally to a combination of technical factors and growing institutional interest, with the Relative Strength Index and Moving Average Convergence Divergence indicators signaling bullish momentum.

A key catalyst for the rally appears to be the token's ability to hold above critical support levels. On November 12, ICP slipped 0.65% to $6.30 but remained above the $5.79 support zone, a threshold that has historically capped downward momentum. This resilience has reinforced the case for a continuation of the upward trend, with some analysts projecting a potential move toward $9.12 if the token sustains its current trajectory. The 100-day moving average and Murrey Math Lines have also been breached, adding to the bullish case.

Despite the optimism, challenges remain. The token's consolidation phase has highlighted the fragility of the rally, with trading volume thinning sharply at times, including several minutes of zero trades, as of November 13. This suggests a temporary equilibrium rather than a decisive shift in sentiment. Traders are closely watching $8.00 as the next resistance level, with a sustained close above this mark potentially unlocking targets toward $8.50–$8.90. Conversely, a failure to maintain $6.35 could trigger a retest of the $5.79 support, raising questions about the sustainability of the rally.

The broader market context also plays a role. The Energy-as-a-Service sector, which has seen partnerships involving ICP-related projects, is projected to grow at a 12.3% CAGR through 2030, indirectly supporting the token's real-world utility. Additionally, institutional-grade tokenization platforms like Taurus-CAPITAL are enhancing ICP's adoption in niche markets, such as renewable energy financing.