The Internet Computer (ICP) token finds itself at a critical juncture, having retreated to the $2.86 level after a failed attempt to overcome the $3.15 resistance barrier. This pullback reflects a broader wave of caution sweeping across the crypto market, but for ICP, it represents a specific test of its recent technical strength.
A Swift Shift in Momentum
Just days ago, ICP was painting a bullish picture. On October 28, the token successfully broke through the key $3.20 resistance level, a move that was accompanied by a massive 115% surge in trading volume, signaling strong institutional accumulation and a potential trend reversal. However, this optimism was short-lived. The rally lost steam as the token faced rejection at the $3.15 level, leading to a 3.2% decline in the October 30 session. The spike in volume during this sell-off indicated that both retail and larger funds were quick to exit their positions, erasing the gains from the earlier breakout.
The Broader Market Squeeze
This technical breakdown did not occur in a vacuum. The sell-off was amplified by a risk-off wave across the entire cryptocurrency sector, triggered by the U.S. Federal Reserve’s interest rate decision and subsequent cautious remarks from Chair Jerome Powell. This macroeconomic turbulence led to over $1.1 billion in liquidations across the crypto market, creating a challenging environment for altcoins like ICP. The token’s current technical structure is now being tested, with immediate support forming near the $2.85 level. A sustained hold above this zone is crucial to prevent a deeper slide toward the next significant support level.
Navigating the Path Ahead
For traders and investors, the immediate future hinges on a few key factors. The primary level to watch is the crucial support zone around $2.85. If buyers can defend this level, it could lead to a period of quiet accumulation and set the stage for another attempt to challenge overhead resistances . However, a decisive break below this support could invite further losses and signal a resumption of the bearish trend. Given the current high volatility and fragile market sentiment, a cautious approach with reduced position sizes is prudent until the technical picture becomes clearer.
