ICP Retraces November Rally, Short-Term Stabilization in Focus
Lomesh Dutta, Vice President of the Dfinity Foundation, stated that AI-powered “no-code” tools will play a significant role in the development and evolution of applications. According to Dutta, these solutions enable the creation of secure, stable, and tamper-resistant infrastructure. This approach could help prevent the type of system failures that many crypto companies and Web3 applications experienced following the AWS outage in October.
The non-profit Dfinity Foundation serves as the main organization guiding the development of the Internet Computer (ICP) blockchain. These statements appear to have brought ICP back into the public eye and may partially explain its recent price surge. ICP rose 22.6% from Friday’s low, though it has faced a minor pullback in recent trading hours.
November Rally Fully Retraced
From a technical perspective, the recovery’s sustainability remains uncertain. The 3-day chart shows a full retracement of November’s rally, which spanned from $2.79 to $9.85. Previously monitored support levels at $5 and $4.3 failed to hold.
Indicators also reflect a weak outlook. The DMI shows no clear trend but captures the speed of the recent impulse move and subsequent pullback. OBV is gradually declining, while the MACD indicates continued bearish momentum.
Short-Term Stabilization Efforts
For the structure to flip bullishly, ICP needs to move back above $3.78. The 4-hour chart highlights an imbalance around the $3.2 level. At the time of writing, ICP had fallen 8.46% in under 12 hours.
While some short-term signals appear favorable, the higher timeframe structure remains bearish. Market-wide caution, especially in Bitcoin, increases the risk that altcoins experiencing strong gains may face heavy selling pressure.
In summary, ICP’s recent recovery is notable, but a more confirmed and sustainable trend change requires validation on longer timeframes.
