Internet Computer (ICP) continues to trade under a dominant bearish structure following a strong rejection from higher Fibonacci resistance levels. While the broader trend remains negative, price action is beginning to stabilize near a key demand zone, suggesting that downside momentum is gradually weakening.
Market Structure Overview
The recent sell-off accelerated after ICP failed to hold above the $7.14 (0.618 Fib) and $8.33 (0.786 Fib) resistance levels. This rejection led to a decisive breakdown below the mid-range structure and all major moving averages, reinforcing bearish control.
EMA Structure: Sellers in Control
ICP remains below all key EMAs, confirming sustained selling pressure:
20 EMA: $3.40
50 EMA: $3.88
100 EMA: $4.22
200 EMA: $4.75
The EMA cluster between $3.88–$4.75 represents a strong resistance band. As long as price trades below this zone, upside potential remains limited.
Price Action & Support Zone
Price is consolidating above the $3.30–$3.45 demand zone, an area that has repeatedly absorbed selling pressure. This zone sits just above the $2.77 Fib 0 level, making it a critical support region. Continued defense of this area could allow a short-term base to form, while a breakdown would likely trigger renewed downside.
Bullish Recovery Levels
For ICP to signal a meaningful recovery, buyers must reclaim the following resistance levels:
$4.44 (0.236 Fib): Initial recovery hurdle
$5.47 (0.382 Fib): Structure stabilization level
$6.30 (0.5 Fib): Mid-range resistance
$7.14 (0.618 Fib): Bullish continuation confirmation
$8.33 (0.786 Fib): Major trend reversal zone
A clean break above $8.33 would significantly improve the broader market outlook.
Bearish Continuation Scenario
Failure to hold the $3.30–$3.40 support zone would expose ICP to further downside, with $2.77 acting as the next major support. A decisive breakdown below this level would invalidate the current stabilization attempt and extend the broader downtrend.
Momentum Indicator
RSI (14): 46.97
RSI remains below the neutral 50 level, indicating weak momentum. However, the recent uptick suggests selling pressure is easing and buyers are cautiously stepping in.
Key Levels Summary
Resistance:
$4.44 • $5.47 • $6.30 • $7.14 • $8.33
Support:
$3.30–$3.45 • $2.77
Conclusion
ICP remains structurally bearish and capped below its EMA resistance cluster. That said, stabilization near the $3.30–$3.45 demand zone and slowing downside momentum hint at potential base formation. Bulls need to reclaim $4.44 and higher to confirm recovery, while a loss of current support could open the door for another move lower toward $2.77.
$ICP
