The price of Internet Computer's native token, ICP, has surged sharply, gaining more than 30% over a two-day period to approach the $3.70 zone. This rally, which began around January 13-14, 2026, coincided with a nearly 190% spike in 24-hour trading volume, reaching approximately $186 million, indicating strong market engagement.
The primary catalyst for the move is the proposed 'Mission 70' tokenomics update announced by the DFINITY Foundation. The plan aims to reduce ICP's annual inflation by up to 70% by the end of 2026, projecting a drop from roughly 9.72% to about 5.42%. This fundamental reset involves capping voting rewards, shortening neuron dissolve delays, and cutting node provider payouts by as much as 49% to address supply dilution concerns.
Analyst Dao King emphasized this is a structural shift, not a cosmetic tweak, creating a potential supply shock. The price action is further supported by growing network usage, with weekly ICP burns recently hitting 18,728 tokens—one of the highest levels since September 2024—driven by its positioning as an on-chain cloud and AI platform where applications consume and burn ICP.
Technically, ICP broke above a multi-month descending trendline, signaling a potential reversal with a price target near $5.30. However, immediate resistance is seen at $3.78 and $4.34. Indicators like the Parabolic SAR confirm bullish momentum, while the Chaikin Money Flow (CMF) shows improved capital inflows. Yet, the Accumulation/Distribution indicator remains negative, suggesting underlying selling pressure persists. Market sentiment is overwhelmingly bullish, with 73.68% of participants holding a positive outlook on ICP.
