pulled back from its rally above $6.50 to trade just below $5 throughout European morning Wednesday, nearly 25% below Tuesday’s peak.
ICP posted a resistance-breaking rally on Tuesday, gaining as much as 64% to eclipse the $6.50 mark, before profit-taking limited much of those gains, according to CoinDesk Research’s technical analysis data model.
Trading activity was intense, with 20.48 million tokens exchanged – roughly 418% above average – as traders responded to volatile swings between $4.77 and $6.35.
Despite the reversal, ICP’s recent strength remains remarkable given the broader crypto market’s ongoing pullback. The token outperformed major peers earlier this week, but has since moved into consolidation as momentum cools. Analysts note that ICP’s elevated volume and recurring liquidity increases reflect continued institutional interest, even as volatility increases risk for short-term traders.
The current technical setup shows ICP stabilizing above the $4.80 support, which has repeatedly attracted buyers over the past three sessions. Resistance now forms between $5.20 and $5.40, where earlier rallies met selling pressure. A sustained push above this zone could re-establish bullish momentum, while failure to hold $4.77-$4.80 risks a deeper correction towards the $4.50 range.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
