The Internet Computer (ICP) token has extended its decline, breaking key support levels and testing fresh lows near $3.48. The token is currently trading around $3.50, marking a 4.5% drop over the past 24 hours. Trading volume remains significant, exceeding $100 million, with 2.6 million tokens traded, indicating heightened activity despite the negative price trend.
ICP broke below its multi-day consolidation band after failing to sustain an intraday high of $3.76. This move has pushed the token toward the critical support zone between $3.45 and $3.50. Analysts note that a sustained break below $3.45 could open the door for a retest of November's lows, reinforcing the current bearish trend. Conversely, a rebound above $3.55 could signal early momentum recovery for buyers.
Market dynamics are dominated by selling pressure, particularly evident in rapid sell-offs after midnight UTC. Intraday volatility has reached 8%, reflecting the token's struggle to regain lost ground. The $3.45-$3.50 range is now a crucial reference point that will determine whether ICP stabilizes or continues its downtrend.
Concurrently, technical analysis highlights that ICP is drifting inside a narrowing falling wedge pattern, a structure often signaling fading bearish momentum. Crypto analyst AltCryptoTalk points out that the token is revisiting a key demand zone around $3.30, which previously triggered a significant rally that propelled ICP toward the $6 mark. The analyst suggests that a bounce from this familiar support, coupled with the falling wedge formation, could potentially set the stage for another upward move. However, a break below the $3.30 and secondary $2.85 support levels would invalidate this bullish structure.
ICP is now at a technical crossroads, trapped between persistent selling pressure and a historically significant support area. The next price reaction at these levels is poised to define the token's trajectory for the coming weeks.
