ICP Drops 3% as Rally Stalls at $5.05 Resistance

Internet Computer Protocol (ICP) endured a turbulent 24 hours session, swinging through a $0.22 corridor that represented a 4% range. After testing support at $4.83, the token mounted a strong rally to reach $5.05 by 06:00 UTC before falling back.

That move confirmed $4.83 as a crucial accumulation zone, where volume surged to 348,793 units, according to CoinDesk Research's technical analysis data model.

The rally faltered at $5.05, where concentrated distribution created a firm ceiling. The reversal accelerated, beginning with consolidation near $4.97 before a late push to $4.99 at 14:00 UTC. Selling pressure then overwhelmed the market, driving ICP down to $4.93 within minutes.

At the time of writing, ICP traded just below $4.90, 3% below its intraday high of $5.05.

Turnover spiked sharply during this interval, with more than 170,000 units transacted between 14:01 and 14:03, suggesting systematic liquidations or stop-loss execution.

Beyond technicals, ICP’s momentum reflects ongoing ecosystem development. On Sept. 4, the network achieved its Ignition milestone, enabling large language models (LLMs) to run natively on-chain.

The upgrade allows developers to build AI-powered decentralized applications (dapps), including those that can generate smart contracts directly, on the ICP blockchain. The long-term vision is to create a “self-writing Internet” where even non-technical users can deploy dapps using natural language inputs.

Technical Analysis

ICP traded in a $0.22 corridor between $4.83 support and $5.05 resistance.Strong accumulation confirmed at $4.83, supported by above-average volume of 348,793 units.Rally peaked at $5.05 before heavy selling emerged. A sharp reversal saw prices fall from $4.99 to $4.93 within minutes.Volume exceeded 170,000 units during 14:01–14:03, signaling systematic liquidation.New support formed at $4.93, marking a potential pivot for future sessions.Resistance remains entrenched at $5.05, the key threshold for a sustained breakout.

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