Internet Computer (ICP) price breaks out of descending trendline resistance, targets upside to $10

Internet Computer (ICP) price has broken out of a descending trendline that had been acting as resistance on the daily chart. This breakout opens the possibility of potential gains as high as $10 in the coming weeks. This move represents a potential end to its multi-month downtrend, flipping a key technical barrier into support and laying the foundation for sustained upside momentum.

On Wednesday, Internet Computer price surged nearly 70%, reaching an intraday high of $6.32 before settling at $5.14. At this level, the price remains 76% higher than its monthly low but is still down 58% from its yearly high of $12.32. This move follows the announcement of Dfinity Foundation's AI platform Caffeine update, which added image and code prompts to its existing support for text input, unlocking broader use cases for decentralized AI development.

According to CoinGecko, ICP's trading volume spiked 170% over the past 24 hours, and CoinGlass reports that open interest in ICP futures climbed by 10% to reach $137.76 million, while futures trading volume surged 126% to hit $2.68 billion. These metrics indicate that the recent rally was likely fueled by intraday catalysts that encouraged leveraged traders to chase upside momentum.

Fundamental metrics further support ICP's rally. DeFiLlama shows the total value locked (TVL) across DeFi protocols on the Internet Computer jumped 22.5% in the past 24 hours, reaching $37.9 million. Additionally, the market cap of stablecoins circulating on the network rose 13.5% over the last 7 days to approximately $4.5 million. These indicators suggest growing investor confidence in the ecosystem's utility, which could contribute to sustained bullish sentiment.

Technical analysis supports the bullish outlook. The MACD lines are widening bullishly, and the RSI is trending upward, indicating growing momentum and buyer confidence. The next likely target lies in the $10–$11 range, a key resistance area tested multiple times last year. A breakout into this range would confirm a clean exit from the multi-year falling wedge pattern, signaling potential for long-term gains.

On the downside, $5 serves as an immediate psychological and historical support level. If this level fails, ICP could potentially revisit the $2.80 zone, which acted as a key base during the previous bottoming phase. Investors should remain aware of these risks while ICP navigates this critical phase of its recovery.

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