Institutional Distribution Adds to Retail Struggles
The Internet Computer Protocol (ICP) has come under renewed selling pressure, slipping toward a critical support zone near $5. Analysts note that recent price action reflects both institutional distribution and weakening retail participation, as volume spikes accompany downward moves.
After failing to sustain gains above the $5.60–$5.70 resistance region, ICP has steadily pulled back. The token now hovers around $5.09, just above a key demand zone between $4.80 and $5.00. Technical analysts caution that a decisive break below this range could trigger further declines toward $4.50.
“Volume spikes during sell-offs often indicate that larger players are offloading positions, while smaller traders hesitate to step in,” According to BITX market strategist. “Unless buyers defend this support aggressively, the path of least resistance remains lower.”
Market Structure and Risk Zones
The chart highlights a sequence of lower highs since mid-August, reinforcing a short-term bearish structure. Resistance has formed in the $5.40–$5.60 band, while buyers have so far managed to protect liquidity pockets near $4.90.
According to technical research, if ICP sustains above this green demand zone, a recovery toward $5.40 may be possible. However, a breakdown would expose the asset to deeper corrections.
Crypto analysts remain divided on ICP’s outlook. Some argue that the coin is approaching oversold levels, presenting potential for a rebound. Others emphasize that the broader altcoin market is struggling under macro uncertainty, with buyers showing caution.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.