pulled back from its rally above $6.50 to trade just below $5 throughout European morning Wednesday, nearly 25% below Tuesday’s high.
ICP saw a sharp rise through resistance on Tuesday, gaining as much as 64% to eclipse the $6.50 mark, before profit-taking capped much of those gains, according to CoinDesk Research’s technical analysis data model.
Trading activity was intense, with 20.48 million tokens traded – which is approximately 418% above average – as traders reacted to volatile swings between $4.77 and $6.35.
Despite this reversal, ICP’s recent strength remains remarkable given the broader crypto market’s current pullback. The token outperformed its major peers earlier in the week, but has since moved into consolidation as momentum cools. Analysts note that high ICP 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 is now forming between $5.20 and $5.40, where previous rallies encountered selling pressure. A sustained push above this zone could re-establish bullish momentum, while failure to hold $4.77 to $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 team for accuracy and compliance. our standards. For more information, see CoinDesk Comprehensive AI Policy.
