ICP rallies 22%, then slips 8% – What comes next after this volatility?

ambcryptoPublished on 2025-12-22Last updated on 2025-12-22

Abstract

Internet Computer (ICP) experienced significant volatility, rallying 22.6% from a recent low before retracting 8.46% within hours. This movement occurred amid statements from Dfinity Foundation regarding AI-powered no-code tools enhancing secure application infrastructure. Technically, ICP fully retraced its November rally and must reclaim $3.78 to shift to a bullish structure. Lower-timeframe traders might consider buying with a stop-loss under $2.9, but the overall trend remains bearish until key resistance is broken. Market-wide sentiment, including Bitcoin's bearishness, suggests continued sell pressure on altcoins from profit-taking.

The Vice President of Dfinity Foundation, Lomesh Dutta, said that the rise of AI-powered no-code tools for the generation and evolution of applications will enable secure, stable, tamper-resistant infrastructure.

This could help prevent the kind of outage that many crypto companies and Web3 applications faced in the aftermath of the AWS outage in October.

Dfinity Foundation is a non-profit organization that guides the Internet Computer [ICP] blockchain development.

These statements could have brought ICP back to the public eye, helping explain the recent rally. ICP gained 22.6% from Friday’s low, but has faced a minor pullback in recent hours of trading.

Profit-taking activity wipes out ICP’s November rally

The 3-day chart showed a bearish internal structure and a complete retracement of the November rally from $2.79 to $9.85. It was expected that the $5 and the $4.3 supports would be defended, but these expectations were proven wrong.

The DMI did not show a strong trend in progress, but its confusing signals served to capture the speed of the recent impulse move and the subsequent retracement. The OBV was slowly bleeding lower, and the MACD also displayed bearish momentum.

To flip the structure bullishly, ICP has to move back above $3.78.

The 4-hour chart showcased an imbalance at the $3.2 area, highlighted in white. This imbalance came after a bullish structure break on this timeframe. At the time of writing, ICP was facing a minor price dip, having shed 8.46% in under 12 hours.

The technical indicators were in favor of the bulls, but traders must remember that the higher timeframe structure is still bearish. Until a move beyond $3.78 comes about, traders need to be careful about taking bullish positions.

Assessing the next ICP move

The market-wide sentiment, especially for Bitcoin [BTC], remained mostly bearish. Until this changes bullishly, it remains likely that altcoins that make strong gains will run into heavy sell pressure from profit-taking activity.

Lower timeframe traders can look to buy ICP now, with a stop-loss below the local support at $2.9.

Traders’ call to action- remain bearish

Until the $3.78 level is breached by a 3-day timeframe candle close, swing traders can remain bearish. The 1-day timeframe also highlights the same local resistance as a key swing point.


Final Thoughts

  • The rise of AI-powered no-code tools that were brought to public attention recently could have helped Internet Computer post some of its recent gains.
  • The price action remained in favor of the bears over the past month, and traders should be wary of going long until the structure shifts bullishly.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Related Questions

QWhat was the main reason mentioned for the recent rally in ICP's price?

AThe rise of AI-powered no-code tools for application generation and evolution, which brought ICP back to public attention.

QWhat key price level must ICP surpass to flip its structure bullishly according to the article?

AICP must move back above $3.78 to flip the structure bullishly.

QWhat was the percentage decline ICP faced in under 12 hours at the time of writing?

AICP shed 8.46% in under 12 hours at the time of writing.

QWhat is the suggested stop-loss level for lower timeframe traders considering buying ICP?

AThe suggested stop-loss is below the local support at $2.9.

QWhy should traders remain bearish on ICP until the $3.78 level is breached?

ABecause the higher timeframe structure remains bearish, and a close above $3.78 is needed to shift the structure bullishly.

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How to Buy ICP

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