Internet Computer falls as technical indicators remain negative

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Internet Computer slides 8.06% to $3.18

Highlights

Internet Computer trading volume surged 173% and open interest gained 24.86%, indicating a spike in speculative activity.
The funding rate shifted positive to 0.01% as traders temporarily skewed long, but overall price action stayed under selling pressure.
ICP/USD trades below short-term moving averages and technicals indicate dominance by sellers, with a projected range of $2.94 to $3.33 and 67% probability of further downside.

Speculative interest surges as funding rate briefly turns positive

Internet Computer's recent session was marked by a 173% jump in trading volume and a 24.86% increase in open interest, according to Suncrypto. This surge signals intense market participation and a near-term influx of speculative interest. With the funding rate turning positive at roughly 0.01%, it suggests that derivatives traders temporarily skewed long, though price action has remained under broader selling pressure.

Bearish bias persists with negative momentum and crossover signals

On the technical front, ICP trades below its MA-20 and MA-50 on the hourly chart, while remaining above the MA-200, illustrating a crossover-driven short- and medium-term bearish alignment but sustained longer-term support. Immediate resistance is defined by the Ichimoku Kijun level at $3.27. Momentum indicators are negative: both MACD and ADX signal a sell, as do the RSI (40.61), CCI, and Bull/Bear Power. Stoch RSI is overbought, signaling a divergence where some oscillators point to stretched short-term conditions despite ongoing selling pressure, while the Awesome Oscillator remains neutral.

Consolidation likely as downside risk outweighs upside breakout

Looking ahead over the next trading day, ICP/USD is expected to range between $2.94 and $3.33, consistent with its recent volatility band relative to current levels. The probability of further downside stands at 67%, with only a 33% chance of an upward move breaking through resistance. The baseline scenario envisions a consolidation phase within this band. However, a sustained breakout above $3.27 would open the path for renewed gains, while a decisive drop below $2.94 could trigger further declines.

Viktoras Karapetjanc, expert at Traders Union, sees a constructive setup building for Internet Computer despite lingering downside risk. He notes that surging trading volume and interest reflect renewed participation and shifting sentiment, even as short- and medium-term technicals remain under pressure. Karapetjanc believes the longer-term picture is supported by macro factors, with a positive funding rate hinting at a possible near-term reversal. "If bullish momentum can reclaim $3.27, I expect speculative demand to strengthen and drive ICP toward a more sustainable recovery."

Earlier, analysts noted that Internet Computer's technical structure and new ecosystem initiatives had reinforced a bullish outlook. However, with current indicators pointing to intensified selling pressure and a higher probability of further downside, traders should closely monitor the $2.94 support level as a potential inflection point for renewed volatility.

Source of Data: ICP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.