ICP Drops 3% as Rally Stalls at $5.05 Resistance

Internet Computer Protocol (ICP) endured a turbulent 24 hours session, swinging through a $0.22 corridor that represented a 4% range. After testing support at $4.83, the token mounted a strong rally to reach $5.05 by 06:00 UTC before falling back.

That move confirmed $4.83 as a crucial accumulation zone, where volume surged to 348,793 units, according to CoinDesk Research's technical analysis data model.

The rally faltered at $5.05, where concentrated distribution created a firm ceiling. The reversal accelerated, beginning with consolidation near $4.97 before a late push to $4.99 at 14:00 UTC. Selling pressure then overwhelmed the market, driving ICP down to $4.93 within minutes.

At the time of writing, ICP traded just below $4.90, 3% below its intraday high of $5.05.

Turnover spiked sharply during this interval, with more than 170,000 units transacted between 14:01 and 14:03, suggesting systematic liquidations or stop-loss execution.

Beyond technicals, ICP’s momentum reflects ongoing ecosystem development. On Sept. 4, the network achieved its Ignition milestone, enabling large language models (LLMs) to run natively on-chain.

The upgrade allows developers to build AI-powered decentralized applications (dapps), including those that can generate smart contracts directly, on the ICP blockchain. The long-term vision is to create a “self-writing Internet” where even non-technical users can deploy dapps using natural language inputs.

Technical Analysis

• ICP traded in a $0.22 corridor between $4.83 support and $5.05 resistance.
• Strong accumulation confirmed at $4.83, supported by above-average volume of 348,793 units.
• Rally peaked at $5.05 before heavy selling emerged. A sharp reversal saw prices fall from $4.99 to $4.93 within minutes.
• Volume exceeded 170,000 units during 14:01–14:03, signaling systematic liquidation.
• New support formed at $4.93, marking a potential pivot for future sessions.
• Resistance remains entrenched at $5.05, the key threshold for a sustained breakout.

Disclaimer: Parts of this article were generated with the 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.