Internet Computer (ICP) experienced a notable 6.5% uptick in value over the past 24 hours, providing a temporary reprieve from the persistent downtrend that has gripped the token since March. However, despite the bullish momentum, ICP still faces significant resistance levels, particularly around the $3.7–$3.75 zone, which may determine the sustainability of this latest price movement.
The short-term surge in ICP’s price appears to be closely linked to a spike in trading volume and a concentrated cluster of short liquidations around the $3.5 level. This accumulation of liquidated positions likely created a vacuum that allowed buy-side pressure to push the price higher, peaking near $3.67. Historically, such liquidity pockets often act as magnets for price action, drawing in traders and temporarily boosting volatility.
Despite this short-lived bounce, broader market structure on higher timeframes remains firmly bearish. Since March, the weekly chart has shown a consistent downtrend, with lower highs and lower lows. Even during periods of widespread market optimism—such as the rallies in Bitcoin and other large-cap altcoins in April and June—ICP failed to break out of its declining trajectory. The October sell-off, which brought the price down to $3.33, simply reinforced this larger bearish pattern.
ICP is currently trading within a key supply zone that dates back to mid-October. After the significant drop on October 10th, the $3.75 area has acted as a firm resistance ceiling. Although the current daily chart reflects a bullish structure, with prices attempting to climb above recent highs, momentum indicators paint a more cautious picture. The Chaikin Money Flow (CMF) remains below the zero line, indicating that capital outflows are still prevailing. Similarly, the Awesome Oscillator continues to hover in negative territory, underscoring the lack of strong bullish momentum.
For traders watching this asset, the $3.7–$3.75 region is critical. A successful breakout above $3.8, followed by a retest and confirmation of support, would present a more reliable opportunity for upside continuation. Without this breakout, however, the recent rally may prove to be a typical relief bounce within a larger downtrend.
Looking at the liquidity landscape, the recent price action reinforces the principle that markets often move toward areas of high liquidity before making decisive moves. On November 1st, after dipping to the $3.33 level—a known liquidity cluster—ICP rebounded toward $3.5 and then climbed higher as short positions were liquidated around $3.55. This move, while significant in percentage terms, still falls within the boundaries of a bearish market structure.
Another factor in play is the classification of ICP as an AI and Big Data token. This sector has seen fluctuating interest amid broader technological trends, and while this classification might attract thematic investors, it hasn’t yet translated into sustained buying pressure for ICP.
From a technical analysis standpoint, until the price establishes higher lows and breaks through major resistance levels on the daily and weekly charts, the broader trend remains down. Traders should exercise caution and avoid chasing short-term rallies without confirmation of trend reversal.
In the near term, monitoring volume dynamics and liquidation data can provide insights into potential price movements. For instance, a surge in long liquidations could indicate a reversal to the downside, while another wave of short liquidations near resistance could push ICP toward the next resistance level at $3.8–$4.0.
Long-term investors should also keep an eye on macroeconomic conditions and Bitcoin’s performance. As the leading cryptocurrency, Bitcoin’s price movements often set the tone for the wider altcoin market. If BTC enters a new bullish phase, it could provide the momentum needed for ICP to finally break its downtrend.
Additionally, upcoming developments or announcements from the DFINITY Foundation, the organization behind Internet Computer, could influence investor sentiment. Any significant updates related to network upgrades, adoption, or partnerships could act as catalysts for a price shift.
Fundamentally, the Internet Computer protocol aims to decentralize the web by enabling smart contracts to run at web speed directly on the blockchain. While this ambitious vision has attracted attention, the project still faces challenges in adoption and real-world integration. As such, fundamental improvements in network usage and developer activity could eventually support a more sustainable upward price trend.
In summary, while ICP’s recent 6.5% surge offers a glimmer of hope for bulls, the token still faces considerable technical and market-based hurdles. The $3.7–$3.8 range will be the next key test. Without a confirmed breakout above these levels, the current bounce is more likely a temporary reaction rather than the start of a new bullish cycle. Traders and investors should remain vigilant, focusing on both technical signals and broader market trends before making any significant moves.