The Internet Computer (ICP) price surged more than 9% on May 27, trading around $2.89 as traders rotated back into AI-related altcoins. Trading volume jumped over 165% in the past 24 hours, pushing ICP into the top five gainers in the market.
A key catalyst behind the rally is the revival of the AI crypto narrative. Investors are now grouping ICP alongside projects like Bittensor, NEAR Protocol, and FET, viewing it as more than a smart contract chain due to its decentralized cloud computing and fully on-chain hosting capabilities. Veteran trader Matthew Dixon noted that the pump was driven by AI narrative rotation, breakout buying, and a squeeze on short sellers.
On-chain metrics have strengthened bullish sentiment. Internet Computer has processed more than 287 billion transactions since launch, averaging approximately 2,891 transactions per second. Data from Chainspect shows that ICP handled roughly 6.5 billion transactions in the past 30 days, more than double Solana’s 2.9 billion during the same period. This has fueled arguments that ICP may still be undervalued relative to actual usage.
Additional optimism comes from the proposed “Mission 70” tokenomics overhaul, which aims to reduce inflation, lower node emissions, cap governance rewards, and improve token burn mechanics. Combined with the recently introduced Cloud Engines framework—where 20% of revenue will be used to buy back and burn ICP tokens—traders are eyeing a potential supply shock if network adoption continues growing.
From a technical standpoint, the daily chart showed a clean breakout above the $2.72–$2.77 resistance zone, which had rejected price multiple times. ICP also cleared the 20 EMA, 50 EMA, and 100 EMA in a single session, with the Supertrend indicator identifying the next key ceiling at $3.197. The RSI recovered to near 58, signaling improving momentum without being overbought. Futures volume nearly doubled to $308.22 million, with longs absorbing $463,040 against $307,700 for shorts over 24 hours. If bulls hold above the $2.70 breakout line, the next target is the $3.20–$3.60 supply zone, with further potential toward $4.00.
