ICP price retests key level: what’s the outlook?

Internet Computer token ICP traded to highs of $2.58 to extend its uptick.
Gains came amid a notable spike in volume as crypto prices bounced higher.
ICP could target $4.00 or higher, though risks of a sharp pullback remain.

Internet Computer (ICP) price has retested the pivotal supply zone above $2.50 as bulls edge higher from the seven-day low near $2.

The retest occurs amid broader recovery efforts across the cryptocurrency market, with ICP among the top altcoin gainers on the day.

With prices up 9% in the past 24 hours, and volume up 93% to over $125 million, it’s likely bulls could target resistance at higher levels.

Internet Computer price jumps above $2.50

ICP currently boasts intraday gains of about 9% over the past 24 hours, with the price currently trading down from its peak in the period.

But having pushed from a low near $2, it appears bulls have their sight on more.

Gains for ICP mirror broader market sentiment, where Bitcoin tested highs near $70,000 amid Nvidia-driven risk appetite.

The AI narrative also pushed tokens like NEAR, Bittensor, and Render higher.

The uptick to intraday highs of $2.58 sees the Internet Computer token trade at levels last seen in mid-February.

ICP price technical picture

From a technical standpoint, ICP’s retest of the $2.50 hurdle marks a potentially critical flip.

The price action signals buyer interest, and a breakout from a long-term downtrend line is likely to strengthen.

Bulls now need to successfully hold above this level to validate a bullish reversal pattern.

Targets on the upside include resistance at $3.21 and $4.00, with volume confirmation key to buyer conviction.

Internet Computer price chart by TradingView

RSI on the daily chart suggests bulls may have room to test bears’ resilience, while the MACD also displays potential bullish strength.

However, price is below key moving averages, and the shape of the 50 and 100-day simple moving averages outlines overhead resistance.

If price drops from current levels, robust support lies at $2.00 and the October 10 low of $1.98.

The token changed hands at around $2.41 at the time of writing.

Key ICP proposal

Notably, ICP is rising amid Internet Computer’s recent proposal for a tokenomics upgrade.

In its plan, DFINITY Foundation seeks the introduction of revenue-funded burns, with 20% from cloud engine fees alongside usage-based node rewards being removed.

This will directly tie ICP supply reduction to network demand, a mechanism that then sees 80% of cloud engine revenue allocated to node providers.

In this case, the Internet Computer wants to shift from fixed subsidies to performance-linked incentives, a model that would mirror other cloud compute-focused chains.