Latest Internet Computer (ICP) Price Analysis

Deep Dive

1. Altcoin Weakness Amid Bitcoin Dominance (Bearish Impact)

Overview: Bitcoin’s dominance rose to 59.4% (up 0.27% in 24h), signaling capital rotation away from alts like ICP. The global crypto market fell 0.86%, with ICP mirroring losses seen in Layer-1 peers like Polkadot (-4.5%) and AAVE (-18% weekly).

What this means: Altcoins often lag during Bitcoin-driven risk-off phases. ICP’s 30-day correlation with Bitcoin remains high (0.82), leaving it vulnerable to BTC volatility.

What to look out for: A Bitcoin dip below $87K (critical support) could trigger deeper altcoin selloffs.

2. Technical Rejection at Key Resistance (Bearish Impact)

Overview: ICP retraced after failing to hold $3.25, a level aligning with its 7-day SMA ($3.07) and Fibonacci 78.6% retracement ($3.10). The 4-hour chart shows a bearish imbalance below $3.20.

What this means: Traders are selling into rallies – ICP’s 7-day RSI (40.7) and MACD (-0.27 vs. -0.31 signal line) reflect fading momentum.

Key threshold: A daily close below $3.00 (psychological support) could open downside to $2.75 (October 2025 low).

3. AI Narrative Fails to Offset Macro Pressures (Mixed Impact)

Overview: Dfinity’s VP highlighted ICP’s AI infrastructure potential (AMBCrypto), but broader risk aversion overshadowed this catalyst.

What this means: While ICP’s AI-driven Caffeine platform (launched July 2025) supports long-term utility, short-term sentiment remains tied to macro liquidity.

What to look out for: Sustained developer activity (ICP ranks #1 in GitHub commits among AI cryptos) could rebuild momentum post-selloff.

Conclusion

ICP’s dip reflects sector-wide caution and profit-taking after its 22% rally. While AI adoption and on-chain activity provide structural support, Bitcoin’s dominance and weak technicals dominate near-term price action. Key watch: Can ICP hold $3.00, or will Bitcoin’s volatility trigger a retest of 2025 lows?