ICP Falls Nearly 25% Following Surge to Over $6.50

ICP pulled back from its rally above $6.50, trading just below $5 throughout the European morning on Wednesday, marking a nearly 25% decline from Tuesday's peak. The cryptocurrency saw significant movement after Tuesday's dramatic rise, highlighting fluctuating market conditions.

On Tuesday, ICP experienced a resistance-shattering surge, gaining as much as 64%, breaching the $6.50 mark before a wave of profit-taking limited further advances. According to CoinDesk Research's technical analysis, this surge was fueled by intense trading activity as traders navigated its volatile swings between $4.77 and $6.35.

Trading volume was remarkable, with 20.48 million tokens exchanged, which represented an increase of roughly 418% above average levels. This elevated activity underscores the heightened interest in ICP, despite significant fluctuations within a short timeframe.

Despite Wednesday's reversal, ICP’s recent strength remains notable, especially given the overall pullback in the broader crypto market. Earlier this week, the token outperformed several major peers but has since entered a phase of consolidation as market momentum cools. Elevated trading volume and recurring liquidity spikes indicate ongoing institutional interest, even as heightened volatility increases risk for short-term traders.

The current technical setup shows ICP stabilizing above $4.80, a support level that has consistently attracted buyers over the past three sessions. Resistance has now formed between $5.20 and $5.40, a range where previous rallies faced selling pressure. A sustained rise above this resistance zone could reignite bullish momentum, while failure to hold the $4.77–$4.80 level could lead to a deeper correction toward the $4.50 range.

Disclaimer: Parts of this article were generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.