Vice President of the Dfinity Foundation, Mr. Lomesh Dutta, stated that the rising wave of no-code tools utilizing artificial intelligence will create a significant shift in building and developing applications, towards a safer, more stable infrastructure capable of resisting external interference.
According to him, this change could help mitigate serious disruptions similar to the incidents that many cryptocurrency companies and Web3 applications have faced after the AWS outage last October.
The Dfinity Foundation is a non-profit organization playing a key role in guiding and promoting the development of the Internet Computer (ICP) blockchain.
The above statements seem to have contributed to bringing ICP back into the market spotlight, explaining the recent recovery. Since the low recorded on Friday, ICP has increased by 22.6%, although in the most recent trading hours, a slight technical correction has occurred.
Profit-taking activities wiped out ICP's gains in November
The 3-day timeframe chart is painting a less positive picture as the price structure leans heavily towards a downward trend. The entire strong rally in November — from the 2.79 USD area to the peak of 9.85 USD — has been completely erased. Previously, many analysts expected key support areas around 5 USD and 4.3 USD to serve as price anchors, but market reality has denied this expectation.
In terms of technical indicators, the DMI does not confirm the formation of a clear trend, but its mixed signals accurately reflect the pace of the previous strong rally as well as the subsequent strong correction phase. The OBV indicator continues to weaken, indicating that capital inflow is gradually retreating, while the MACD also signals negatively, implying that bearish momentum still dominates.
To reverse the market structure towards an upward direction, ICP needs to quickly recover and break back above the 3.78 USD threshold, thereby establishing a more positive technical foundation for the next upward moves.
4-hour frame analysis
The 4-hour frame chart shows a notable price imbalance around the 3.2 USD mark, highlighted in white. This area formed right after the bullish structure was broken, indicating that market momentum has significantly weakened. At the time of writing, ICP is entering a short-term correction phase, recording a decrease of 8.46% in less than 12 hours, reflecting increased profit-taking pressure.
Although short-term technical indicators still slightly lean towards the bulls, traders need to be particularly cautious when considering the trend picture in the larger timeframe, which still maintains a bearish state. As long as ICP cannot break through and convincingly close above the 3.78 USD area, long positions still face high risks, especially in the context where the market has not confirmed a trend reversal.
Assessing the next move for ICP
The general market sentiment, especially surrounding Bitcoin (BTC), still clearly leans towards the negative. As long as this sentiment does not improve, altcoins — despite recording impressive short-term rallies — still face the risk of strong selling pressure from investors' profit-taking activities.
For short-term traders, ICP may be considered for opening a long position around the current price area. However, risk management needs to be strictly enforced by placing stop-loss orders below the important short-term support area at the 2.9 USD mark.
Trading recommendation: continue to hold a bearish view
Only when the 3.78 USD area is decisively broken by a clear closing candle on the 3-day timeframe can the market outlook change. Until then, medium-term traders still have grounds to maintain a bearish stance. At the same time, the 1-day frame chart continues to reinforce the view that this is a key resistance area, serving as an important barrier for trend-following trading strategies.