Institutional Buyers Steer ICP's Volatile Comeback

Internet Computer Protocol (ICP) stabilized around $4.8 in early September 2025 after a period of significant volatility, showing resilience as institutional buyers accumulated the token. Over the past 24 hours, ICP rose by 2.8%, outperforming the broader CoinDesk 20 index, which recorded a 1.9% gain. The token fluctuated within a $0.24 range, equivalent to a 5% swing, between $4.60 and $4.84, according to technical analysis data. The most notable dip occurred on September 1 between 20:00 and 21:00 UTC, when ICP fell from $4.74 to $4.60 amid heightened trading volume of over 827,000 units, surpassing the 24-hour average of 387,000. The $4.60 level then acted as a strong support point, drawing renewed buying interest that pushed the price back toward resistance levels around $4.83–$4.84 [1].

The recovery was marked by substantial trading volume during key intervals, with hourly volumes exceeding 26,000 units, significantly above the average of 5,500. The price consolidation in the $4.82–$4.83 range ultimately led to a breakout toward $4.84, reinforcing the case for sustained bullish momentum. Analysts noted that the sustained buyer interest at key support levels could potentially push ICP higher, with Fibonacci extensions suggesting upside potential beyond $4.85 [4].

This price action followed a turbulent week for ICP, which saw the token fall from $5.13 to $4.90 on August 29 amid broader market volatility, with $55.3 million in trading volume. However, the token has shown consistent buying interest at lower levels, particularly around the $4.60 zone. This pattern suggests a broader recovery for ICP, which had previously rebounded to $5.13 on August 28 with $45.3 million in trading volume. The yo-yo movement indicates elevated volatility, but sustained institutional interest has been evident in accumulating ICP tokens at current valuations [1].

Technical analysis of ICP reveals a mixed picture, with bearish and bullish signals coexisting. The token is currently trading below its key moving averages, including the SMA 20 at $5.14, SMA 50 at $5.38, and SMA 200 at $5.42, forming a formidable resistance cluster. However, the RSI reading of 43.57 suggests the price is approaching oversold conditions and could potentially bounce if buying pressure continues. Conversely, the MACD indicators and Stochastic readings remain bearish, with the MACD at -0.1595 and the Stochastic indicators showing %K at 27.74 and %D at 12.84, both in oversold territory. The Bollinger Bands indicate that ICP is trading near the lower end of its recent range, with the upper resistance at $5.67 [1].

From a risk-reward perspective, ICP's current positioning offers different opportunities depending on trading strategies. Conservative traders are advised to wait for a clear break above the SMA 20 at $5.14 as a sign of sufficient momentum to overcome resistance. Aggressive traders may view the current levels as attractive, particularly with the 18% volume spike and institutional buying patterns observed. However, strict stop-losses below $4.59 are essential, as a break of this support level could trigger further downward movement. The 52-week range also highlights the current price's proximity to its annual low of $4.55, underscoring potential value or continued challenges for the Internet Computer ecosystem [1].

Looking ahead, the next 24–48 hours are critical in determining whether this institutional buying represents a larger recovery trend or a temporary respite in a continued downtrend. Traders should monitor volume patterns and the ability to hold above the $4.78 pivot point as key indicators of momentum sustainability. The recent price action reflects the token's ability to outperform during institutional accumulation phases despite the bearish technical backdrop, with ICP at a critical juncture as it defends the $4.59 support level [1].

The broader sentiment around ICP remains mixed. The Internet Computer Fear and Greed Index, which evaluates market psychology through multiple indicators, currently reads at a neutral 49 for the 1-day and 4-hour timeframes. The price, volatility, and volume indicators are all in neutral to bearish ranges, while the social and search indicators suggest strong positive interest. Whales have shown increased movement toward buying, and order book analysis indicates strong selling pressure close to current prices. Despite these mixed signals, the token’s resilience and institutional interest suggest a potential for further consolidation and a possible recovery in the near term [2].

Source:

[1] ICP Price Rallies 2.8% as Institutional Buying Drives Internet Computer (https://blockchain.news/news/20250902-icp-price-rallies-28-as-institutional-buying-drives-internet-computer)

[2] Internet Computer Fear and Greed Index (https://cfgi.io/internetcomputer-fear-greed-index/)

[3] ICP-0.31% (https://www.gate.com/price/internet-computer-icp)

[4] ICP Advances 2.8% as Buying Interest Revives (https://finance.yahoo.com/news/icp-advances-2-8-buying-113935351.html)

[5] ICP Rises 2.8% Amid Increased Buying Interest (https://holder.io/news/icp-rises-2-8-buying-interest/)

[6] Internet Computer (ICP) Price Today, News & Live Chart (https://www.forbes.com/digital-assets/assets/internet-computer-icp/)