It retreated from its rally above $6.50, to trade just below $5 during European morning trading on Wednesday, almost 25% below Tuesday’s high.
ICP posted a resistance-breaking surge on Tuesday, gaining as much as 64% to eclipse the $6.50 mark, before profit-taking capped much of these gains, according to CoinDesk Research’s technical analysis data model.
Trading activity was intense, with 20.48 million tokens exchanged, which is about 418% above average, as traders reacted to volatile swings between $4.77 and $6.35.
Despite the reversal, ICP’s recent strength remains notable given the ongoing pullback of the broader crypto market. The token outperformed its major peers earlier in the week, but has since moved into consolidation as momentum cools. Analysts note that ICP’s high volume and recurring liquidity spikes 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 previous rallies found selling pressure. A sustained push above this zone could restore bullish momentum, while failure to hold between $4.77 and $4.80 risks a deeper correction towards the $4.50 range.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and were reviewed by our editorial team to ensure accuracy and compliance. our standards. For more information, see CoinDesk’s full AI policy.
