Why Is Internet Computer (ICP) Price Rallying 45% Today?
Dfinity Foundation announced the public release of its new AI application, Caffeine, which can create applications from text, image, and code prompts. This launch triggered a significant rally in the Internet Computer's (ICP) token, which surged 45% to reach $5.20, the highest since August, along with a 131% rise in trading volume. Leveraged trading and bullish sentiment led to a 132% increase in futures volume, reaching $2.18 billion, and raised the open interest to $174 million. Despite risks of profit-taking due to overbought conditions, the bullish momentum appears sustained, with bulls targeting $6 if RSI levels remain above 75. However, failure to hold above $4.90 could invalidate the bullish trend.
Layer-1
SEC Alleged Securities
Dfinity's Caffeine AI Launch Boosts ICP Activity
Dfinity's Caffeine AI app now supports prompts in text, image, and code, igniting Internet Computer's (ICP) highest trading volume since December 2023. The launch of this groundbreaking AI app has significantly impacted the ecosystem, driving enthusiasm and market activity.
Market Performance Details
On November 4, 2025, ICP's trading volume surged 131% in 24 hours. Futures volume climbed 132% to $2.18 billion, with open interest reaching $174 million. This rally was fueled by leveraged traders capitalizing on bullish trends.
ICP Price Surge and Market Sentiment
The price of Internet Computer's native token, ICP, rose 45%, reaching $5.20 for the first time since August 2025. The rally reflected heightened investor interest following the public release of Caffeine AI, which happened after the app's debut at SFTechWeek Zurich in October.
Technical Analysis: Bullish Setup Remains Intact
ICP currently trades around $5.55, maintaining resilience after hitting an intraday high of $5.79. The Bollinger Band expansion toward $5.94 suggests potential for continued upward momentum. The Relative Strength Index (RSI) at 79.89 indicates overbought conditions; however, if RSI remains above 65, bullish momentum may persist.
Forecast: Key Levels to Watch
Bulls are targeting $6.00, a major Fibonacci extension level. A decisive close above $6.10 could validate a continuation toward $6.75. Conversely, failure to hold $4.90 might reverse gains, potentially bringing the price down to $4.50, where ICP previously consolidated.
Caution for Investors
While high profitability metrics and a 64.31% win rate suggest confidence, overbought conditions could prompt profit-taking risks without sufficient spot demand. History shows such rallies fueled by leverage are prone to early corrections, demanding careful monitoring of market trends.
Disclaimer
Coinspeaker emphasizes that this article is for informational purposes only and should not be interpreted as financial or investment advice. Readers are encouraged to verify information independently and consult professionals before making financial decisions.