Traders on Edge as ICP Hovers at Crossroads of Support and Resistance

The Internet Computer (ICP) price has dropped 3% to $5.05 as the rally stalls at the key $5.05 resistance level. Recent market activity indicates a shift in sentiment, with technical indicators flashing bearish signals and trading volume declining. The token is currently trading below several critical moving averages, suggesting ongoing consolidation and a lack of conviction among traders. This development raises concerns about the sustainability of the recent upward momentum.

According to the latest technical analysis, ICP is trading below the 20-day, 50-day, and 200-day simple moving averages (SMA) at $4.98, $5.27, and $5.35, respectively. This positioning reinforces a bearish bias and highlights the continued pressure on the token’s price. The relative strength index (RSI) stands at 41.56, placing it in neutral territory but trending downward, which may indicate further weakness in the near term. The moving average convergence divergence (MACD) indicator confirms this bearish bias, with a reading of -0.1658 and a histogram of -0.0229, suggesting ongoing selling pressure.

The token’s price action is also constrained by key support and resistance levels. Immediate support is found at $4.59, with the 52-week low at $4.55 serving as a critical floor. On the upside, the $5.58 level represents the first major resistance, while the $6.25 level remains a distant target for bullish traders. The Bollinger Bands analysis shows ICP trading near the lower band at $4.52, with a %B position of 0.2066, reinforcing the bearish narrative as the price remains in the lower portion of its recent trading range.

Trading volume has also shown signs of waning interest. The 24-hour trading volume on Binance is $5,444,948, a decline that suggests a lack of conviction among market participants. This aligns with broader trends observed in other Layer 1 tokens, where ICP has underperformed peers such as BERA and ALGO in daily price gains. Furthermore, the token’s market cap stands at $2.72 billion, with a fully diluted valuation (FDV) of $2.72 billion. This reflects the ongoing challenges in attracting large-scale institutional buying interest.

Risk-reward analysis for aggressive traders suggests that the current price level offers an attractive entry point for those willing to take on higher risk. The proximity to the $4.59 support level provides a clear stop-loss reference, while the potential upside to $5.58 offers a 14% return. However, conservative traders are advised to wait for clearer directional signals before entering long positions, as the mixed technical indicators and weak volume suggest a high probability of continued sideways movement.

The broader market environment is also contributing to the uncertainty. ICP has been trading within a tight range of $0.28, reflecting a 5% intraday volatility. This volatility is influenced by broader macroeconomic factors and the lack of fundamental news to drive price action. In the absence of significant catalysts, technical levels and market sentiment will continue to dictate the token’s performance over the next 24–48 hours.

Analysts and traders are closely monitoring the $4.59 support level, as a break below this threshold could trigger further selling pressure toward the 52-week low. Any attempt to recover will require a decisive move above the $5.01 level, which is currently the 20-day SMA. This level represents a critical psychological and technical threshold that could determine the near-term direction of the asset. Traders are advised to remain cautious and watch for any signs of volume expansion or RSI movement beyond the neutral zone as potential catalysts for the next directional move.