- ICP rose 10% to $3.96 after bouncing from $3.33 Fibonacci support with heavy short liquidations.
- Internet Computer’s market cap rose 9.95% to $2.13B amid $449.92M in daily volume.
- Open interest surged as ICP broke $3.55, triggering a wave of forced short covers.
The Internet Computer (ICP) experienced a strong 10% rally, rising to $3.96 after rebounding from a crucial technical support level. This move followed a period of weak price action, catching short-sellers off guard. Short liquidations and a sharp rise in futures open interest supported the move, creating a strong feedback loop of buying pressure.
ICP stood out in the market by posting one of the few double-digit gains among Layer-1 tokens this week. At press time, it is trading near $3.79, with an 8.31% increase in the past 24 hours. The market cap has risen to $2.13 billion, with a 24-hour volume of $449.92 million, according to CoinMarketCap.
Futures Open Interest Signals Leverage Pressure
CoinGlass data shows a rapid increase in ICP open interest as the price surged from the $3.33 support level. This level acted as the 78.6% Fibonacci retracement of the 2025 high-to-low swing. Traders holding short positions were forced to close them, triggering a chain of liquidations.
A cluster of short liquidations occurred around $3.55, which pushed prices higher and forced more traders to buy back. This price movement lifted open interest and attracted short-term traders. The RSI also surged to 80.87, signaling overbought conditions on lower timeframes.
These conditions often indicate volatility, especially when price movements break through major resistance levels. ICP price pierced multiple resistance zones on the 4-hour chart before meeting pressure at $4.05.
Resistance Levels and Short-Term Outlook
While the weekly chart still indicates a broader downtrend from March, the recent bounce could signal a trend shift if momentum persists. Resistance is now seen at $4.05, aligned with the 23.6% Fibonacci retracement. If bulls maintain control above $3.78, the next target remains near $4.50.
Failure to hold current levels, however, may result in a retest of the $3.33 support. Traders are closely watching price action near these levels, especially in conjunction with futures activity and market volume.
The combination of a technical bounce, forced short liquidations, and a rise in trading volume has helped shift sentiment. Yet, for the move to continue, sustained buying above resistance zones is required.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
