Institutional Selling Pressures ICP as Breakout Remains in Question

The price of Internet Computer (ICP) has stalled below the $6.80 threshold, with traders closely monitoring for signs of a key breakout. Recent data indicates a 2.53% decline in ICP's price over the past 24 hours, bringing the token to $5.05. The token has seen a cumulative drop of roughly 9% since last Thursday, underperforming the broader Layer 1 category average. Traders have noted heightened selling pressure, with the asset falling as low as $4.97 and rebounding to $5.13 before settling at $5.08. This price action reflects growing uncertainty among market participants.

The token’s current market cap stands at $2.72 billion, driven by a circulating supply of 537 million ICP tokens. Despite the recent volatility, the Internet Computer blockchain continues to maintain its position as a scalable and decentralized platform for developing web applications and enterprise IT systems. The network aims to replace traditional cloud services with a decentralized alternative, leveraging smart contract functionality and a token-based governance system. According to the DFINITY Foundation, the network has seen significant developer activity, including the launch of the AI-powered Caffeine platform and integration with the Solana network.

Trading volume has declined by 22% in the last 24 hours, standing at $60.27 million, in contrast to the 79% surge seen in GNO. Weekly trading volume remains below the levels observed for other Layer 1 peers, such as IP, which has seen a 20% monthly gain. Despite this, ICP ranks among the top 40 most popular cryptocurrencies on platforms like Coinbase. The token’s 24-hour trading activity has seen 690 buyers and 420 sellers, with a total of 1,088 trades executed. This data underscores a mixed sentiment in the market, with traders adopting cautious positions ahead of a potential breakout.

Technical indicators suggest that ICP remains within a volatile trading range of $5.05 to $5.51 over the past month, with the token struggling to maintain sustained momentum above critical resistance levels. A key support level appears to be forming near $5.21, as noted by multiple technical analysis reports. However, institutional selling pressure has led to a breakdown in key support levels, raising concerns about near-term bearish sentiment. Analysts have pointed to the token’s inability to maintain a 5% gain above $5.50 as a sign that further consolidation may be required before a bullish move can materialize.

The broader crypto market has also had a bearing on ICP’s performance, with the token lagging behind Bitcoin and Ethereum in relative performance metrics. ICP has declined 66.85% against Bitcoin and 62.55% against Ethereum in the past year. These figures highlight the token’s vulnerability to macroeconomic trends and market sentiment shifts. Despite these challenges, the project has seen key fundamental upgrades, including a token burn initiative and the introduction of advanced policy engines for developers. These developments aim to enhance the platform’s utility and long-term value proposition.

As traders await a definitive breakout, the focus remains on how the Internet Computer will position itself amid increasing competition in the Layer 1 space. The network’s ability to attract institutional interest and sustain developer activity will be critical in determining its future trajectory. With the token currently trading well below its all-time high of $630, ICP faces an uphill battle to regain lost ground and establish a stronger foothold in the evolving crypto landscape.

Source:

[1] Internet Computer - ICP crypto, ICP coin, ICP (https://www.coinbase.com/price/internet-computer)

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