Internet Computer [ICP] is on a strong upside run, defying the market trend. After falling to $2.90 and breaching the $3 support, the altcoin bounced back, defended the price level, and climbed to a four-month high of $3.40.
At press time, Internet Computer was trading around $3.30, up 12.5% on the daily charts. With the uptick, ICP flipped its short-term moving averages.
Over the same period, the altcoin’s volume rose 61%, reflecting higher market activity. Equally, the daily turnover also made an upswing, rising to $45 million for the first time since June.
This implied that the market was driven by intense buying pressure.
Why’s Internet Computer surging now?
ICP saw renewed bullish momentum amid intense debate on freezing stolen funds.
After Bitget attackers drained over $387.5 million, CEO Gracy Chen called on THORChain to refuse service to addresses linked to attackers.
However, THORChain refused, saying its network mechanism is designed to protect the protocol as a whole and not to selectively freeze specific addresses.
After THORchain refused to freeze stolen funds, Dominic, founder of DFINITY, responded. He stated that he would support ICP’s Network Nervous System (NNS) governance proposal to freeze stolen funds.
In this aspect, he signaled support for interchain collaboration to deter theft. After rising support for the security measure, the market responded positively with demand for Internet Computer recovering.
Speculators move with the news
Amid the raging debate, demand for ICP surged, especially on the derivatives side. The altcoin’s Open Interest jumped 18% to $121 million while the volume rose 66% to $189 million.
The rising OI alongside volume implied higher participation as traders opened new positions. Meanwhile, the Long/Short Ratio on Binance rose to 1.8, with Binance Top Traders’ ratios hitting 3.5 and 2.4.
Profit-takers join the party
With Internet Computer jumping to May levels, holders returned to cash out these gains.
The altcoin’s netflow jumped to $1.3 million, marking a reversal from -$448k the previous day. It suggested that more holders sold on exchanges as the market rebounded.
Often, when the market sees rising sell-side activity during an activity, the trend tends to collapse.
What’s next?
Currently, market momentum leads bullishly. The price hike saw ICP flip the 21-day moving averages, reflecting strong pressure to the upside.
Likewise, the +DI rose to 27 while the ADX climbed to 30, confirming a strong upward momentum.
These indicators suggest that the market conditions are ideal for the trend continuation. If positive sentiment holds, Internet Computer will extend the rally, reclaim $3.7, and eye to flip $4.
However, the risk of a pullback also remains, especially due to higher profit realization. If these sellers overwhelm the market, with buyers failing to absorb the pressure, ICP will revisit $2.9.
Final Summary
- Internet Computer bounced back from a $2.9 slip, surging 12% to a four-month high of $3.4.
- ICP surged after Dominic, the founder of DFINITY and ICP, signaled support for chain collaboration to freeze stolen assets.
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